IMF, Brazil loan talks nearly over - IMF
Reuters, Friday, October 23, 1998 at 09:47
RIO DE JANEIRO, Oct 23 (Reuters) - Talks between the
International Monetary Fund and Brazil over an expected $30
billion aid package for Brazil were nearly completed, but there
was no set date for any announcement, an IMF spokesman said
Friday.
"The negotiations are heading toward a conclusion," the
spokesman said, adding: "There is nothing forecast for next
week...there is no date for an announcement."
IMF Deputy Managing Director Stanley Fischer and Brazilian
Finance Minister Pedro Malan were meeting to talk about
Brazil's as yet unannounced plan to save an expected $20
billion next year and qualify for financial support.
Fischer told reporters in Argentina Thursday that Brazil
and the IMF might reach agreement over the loan as early as
next week.
The IMF spokesman declined to comment on reports that the
IMF might provide half the expected $30 billion aid package.
"The Brazilian government has said Brazil's financing needs
were around $30 billion....how that would be divided up is
something to be talked about later," he said.
He also said the announcement of any agreement with the IMF
would be made by the Brazilian government.
Financial markets in Brazil and around the world are
waiting for details of Brazil's austerity plan, which would
pave the way for the IMF-led credit to see Latin America's
biggest economy through its deep financial crisis.
The World Bank, the Inter-American Development Bank and
possibly the G-7 group of industrialized nations are also
expected to take part in the package.
A Russia-style currency collapse in Brazil, the world's
ninth largest economy, might plunge the region into recession
and hurt the world economy as well, economists have said.
william.schomberg@reuters.com))
Copyright 1998, Reuters News Service |
