Brazil To Ask For Intl Funds To Tap When
Needed - O Estado
Dow Jones Newswires
SAO PAULO -- Brazil's government will tell the world's financial leaders
this week that it doesn't require emergency funding now, but would like to
have resources to tap when needed, the O Estado de S. Paulo newspaper
reported Tuesday.
Brazilian Finance Minister Pedro Malan and Central Bank President
Gustavo Franco will tell the multilateral organizations, the U.S. government
and private bankers that Brazil needs their backing to regain the
confidence of the international markets, O Estado said in its front-page
story.
Malan and Franco travel to Washington and New York this week for the
meetings of the International Monetary Fund, the World Bank and the
Group of Seven leading industrial nations.
O Estado said that the government doesn't reject negotiations with the
IMF on an accord. "To the contrary, the announcement of financial help
from the fund is well received by the government, but at this moment it
should serve more to stimulate the recovery in confidence of foreign
investors in Brazil," O Estado said.
O Estado said that, for the third time in two decades, the spotlight at the
IMF meeting will be on Brazil.
In Toronto in 1982, Brazil's external financing dried up when Mexico
declared a moratorium on debt payments. No emergency funding came
out of the meeting and banks suspended lending, which led to a
moratorium on Brazil's debt in 1987.
In Bangkok in 1991, the government of Fernando Collor de Mello made
headway on negotiations with the fund that eventually resulted in a
stand-by agreement. |
