At December 31, 2000, we had approximately R$2,246 million in loans and financing outstanding, of which approximately R$1,564.4 million bore interest at fixed interest rates and approximately R$680.9 million bore interest at floating rates of interest (primarily LIBOR-based). Embratel invests its excess liquidity (R$105.9 million at December 31, 2000) mainly in short-term instruments denominated in Brazilian reais (and approximately R$168.7 million in U.S. dollar denominated instruments). The potential loss that we would have over one year resulting from a hypothetical, instantaneous and unfavorable change of 100 basis points in the interest rates applicable to financial assets and liabilities on December 31, 2000 would be approximately R$6.8 million. This loss is only applicable to financial liabilities as our short-term investments are under post-fixed interest rates. The above sensitivity analyses are based on the assumption of an unfavorable 100 basis point movement of the interest rates applicable to each homogenous category of financial liabilities and sustained over a period of one year. A homogenous category is defined according to the currency in which financial liabilities are denominated and assumes the same interest rate movement within each homogenous category (e.g., U.S. dollars). As a result, our interest rate risk sensitivity model may overstate the impact of interest rate fluctuations for such financial instruments, as consistently unfavorable movements of all interest rates are unlikely.