ROYAL BANK/CANADA BRAZIL UNIT SEES GROWTH
  Royal Bank of Canada's <RY> small
  Brazilian commercial bank subsidiary Banco Royal do Canada
  (Brasil) S.A. sees opportunities for its own growth with an
  expected substantial increase in Brazilian exports to Canada,
  Banco Royal president Michael Brennan said.
      "They (Brazilian exporters) are very interested in the
  Canadian market because it's an untapped market," Brennan told
  reporters after a speech to the Brazil/Canada Chamber of
  Commerce.
      Brennan said Brazil is currently exporting products like
  paper machinery and ships to Canada.
      He said he hopes to see medium-term financing facilities
  for Brazilian companies reinstated shortly, following an
  agreement reached in January with international financial
  authorities.
      Brennan estimated Brazilian exports to Canada totalled
  roughly 800 mln Canadian dlrs in 1985 while imports from Canada
  reached about 700 mln dlrs.
      Brennan said he expects Banco Royal profit to increase this
  year from the three mln U.S. dlrs reported for fiscal 1986
  ended September 30 but said he could not predict by how much
  because of the country's uncertain financial climate.
      Brennan said he expects his bank's growth to come from
  increased exports to Canada. Banco Royal is the only
  Canadian-owned commercial bank in Brazil although <Bank of
  Montreal> has a Brazilian investment bank subsidiary, he said.
      Brennan said he expected Brazil to be able to reach an
  equitable agreement with foreign banks on restructuring its 68
  billion U.S. dlr foreign debt, because the Brazilian economy is
  essentially healthy. He said he believed Brazil might be in a
  position to resume debt repayments within a year.
      Brennan said he could not comment on the impact of Brazil's
  interest payment moratorium on the Royal Bank of Canada.