"Everything has been cut off," a foreign banker here said.

Some foreign bankers here say they were asked to report their loans to the Government.

Some foreign bankers speculate that the amount could be much higher.

"It's clearly an important psychological step," one foreign banker said of the change in status.

The government had to negotiate a new loan from foreign bankers.

"These are all people who favor a more open economy, and that is a very encouraging sign," one foreign banker said today.

A foreign banker based in Madrid put it a little differently.

"This is what we've been waiting for," one foreign banker said following Friday's announcement.

He is regarded as someone who can manage the country's economy and deal effectively with the foreign bankers.

One foreign banker, who asked not to be identified, estimated that $1 billion had fled the country this month.