The government said the Mellon Bank of the United States had been expelled
from the country and warned that other foreign banks may be ordered to leave unless they "collaborate" to renegotiate Brazil's huge external debt.
The central bank confirmed the Mellon Bank, of Pittsburgh, Pa., had been told to leave the country in December because it balked at signing a debt rescheduling plan last year."We felt that a bank that wanted only to enjoy the filet mignon here but didn't want to collaborate to reschedule the debt could not continue in the country," said Reynaldo Ferreira, central bank spokesman.
Brazil has a foreign debt of about $103 billion, the largest in the developing world.
"Other banks that do not collaborate could be in the same situation," Mr. Ferreira said.
Mellon Bank had only a representative office in Rio de Janeiro and did not operate commercially in Brazil.
A Mellon Bank spokesman in Pittsburgh declined comment on Brazil's action.
The conflict arose during debt renegotiations last year, when creditors agreed to reschedule Brazil's debt due in 1985 and 1986 and to renew trade and interbank credits. The package was worth $31.6 billion.
Mellon Bank refused to endorse the trade and interbank credits, but enough other banks agreed to the plan to make approval compulsory.
Mr. Ferreira said: "We'd like to think Mellon was an isolated case."