Improved Balances Picture May Change, Brimmer Warns: Reversal Possible More Indirect Loans
lie said commercial banks have reduced their foreign claims by over $700-million, which is $300-million more that had been targeted for all of 19(18.</br></br>Brimmer said hank funds formerly going to advanced Western European countries have been shifted to developing countries.</br></br>taken over much of the lending formerly done by head offices. These funds come mainly from the Eurodollar marketÛÓdollars held by Europeans.	j</br></br>The Interest Equalization Tax. imposed in 1968, has not| held down new issues of for-, eign securities in the U.S., he said. Rut it has shifted the, direction of the outflow to exempted countries, he noted.</br></br>An increasingly important factor in recent improvements, Brimmer said, arc foreign purchases of American securities. They may exceed the capital outflow from American acquisition of foreign issues this year.