SECURITY PACIFIC &lt;SPC> LOANS PUT ON NON-ACCRUAL
  Security Pacific Corp said it is
  placing medium and long-term loans to Brazil and Ecuador on a
  non-accrual basis as of March 31, a move that will reduce first
  quarter earnings by 7.2 mln dlrs, or nine cts per share, after
  taxes.
      Despite the anticipated reduction to quarterly earnings,
  Security Pacific said it still expects to report first quarter
  earnings higher than the 88 mln dlrs, or 1.11 dlrs per share
  reported for the first quarter of 1986.
      The bank holding company said the action affects 401 mln
  dlrs of loans to Brazil and 73 mln of loans to Ecuador.
      Brazil suspended interest payments on its 68 billion dlrs
  of medium- and long-term debt on February 20.
      Ecuador, which has foreign debt of roughly eight billion
  dlrs, has not paid any interest to foreign banks since
  February.
      In March Ecuador said it would suspend interest payments
  for the rest of the year because of an earthquake which halted
  the export of oil, which accounts for about 75 pct the
  country's export revenues.
      In its announcement, Security Pacific said it will record
  interest income only as it is received in cash.
      The company also said it believes that Brazil will reach an
  agreement with its banks and that interest payments will resume
  later in 1987.
      The Brazilian negotiations resume on Friday in New York
  when Central Bank Governor Francisco Gros is expected to ask
  banks for a 90-day roll-over of some 9.5 billion dlrs of term
  debt that matures on April 15.
  

