	morgan jpm places brazil loans on nonaccrual j p morgan and co inc parent of morgan guaranty trust co of new york said that it will place billion dlrs of medium and long term loans to brazil on a non accrual basis matching similar action by bankamerica corp bac earlier today the move which follows brazil s suspension of interest payments on billion dlrs of commercial bank debt on february is expected to reduce first quarter net income by about mln dlrs of which four mln dlrs represents interest accrued prior to but still uncollected the bank said morgan ed mln dlrs in the first quarter of morgan also said that based on current interest rates and assuming cash interest payments are not received for the rest of the year net income would be reduced by about mln dlrs net income was mln dlrs although u s banks do not have to put loans on nonaccrual until they are over days past due morgan said some of the loans affected by the brazil payment freeze may reach the day limit during the second and third quarters morgan said it assumes talks between brazil and commercial bank lenders will proceed expeditiously and interest payments will resume at the earliest practicable date reuter 
