Brazil says IMF to release $9 bln immediately
Reuters, Friday, November 13, 1998 at 12:23
BRASILIA, Nov 13 (Reuters) - The International Monetary
Fund will release $9 billion to Brazil immediately after its
three-year loan package is approved by the IMF board, Brazil's
Finance Ministry said on Friday.
The IMF could release another $9 billion, out of the total
credit line worth more than $41 billion, in early 1999, the
ministry said in a statement.
The IMF said on Friday it would contribute $18 billion to
the package. The World Bank, Inter-American Development Bank
and leading industrial nations will furnish the remainder. Some
$37 billion of the total could be made available to Brazil over
the next 12 months.
IMF First Deputy Managing Director Stanley Fischer, in
Washington, said Friday that the IMF board is likely to
consider the Brazil package in early December.
The IMF says the additional $9 billion credit could be
released before the first quarterly review of the deal, the
Brazilian Finance Ministry said.
Some 70 percent of the IMF funds will be part of the
newly-created supplementary reserve facility, which charges
higher interest rates and demands quicker repayment, the
ministry said.
Thirty percent of the funds will made available through a
stand-by arrangement, providing short-term balance-of-payments
support.
Copyright 1998, Reuters News Service |
