Cardoso says Brazil would turn to IMF if needed
Reuters, Friday, September 18, 1998 at 21:19
RIO DE JANEIRO, Sept 18 (Reuters) - President Fernando
Henrique Cardoso said on Friday that Brazil would appeal to the
International Monetary Fund "when and if" it became necessary
to protect the country's battered currency.
With an election less than a month away, Brazilian
officials have been carefully side-stepping mention of the
politically sensitive issue of accepting IMF help. They have
been saying Brazil is in contact with international financing
agencies about crisis prevention rather than rescue plans.
Brazil has been spiralling into economic crisis as
investors, panicked after Russia's devaluation, have been
pulling out of emerging markets in droves.
Dollar flight from Brazil was averaging $1.5 billion a day
last week, although it had slowed to a trickle by Thursday as
talk of an international aid package intensified. Many analysts
in Brazil say that outside cash is essential to the defence of
the real currency, but Cardoso would like to avoid appearing in
need of the IMF.
But when pressed by reporters Friday, Cardoso conceded that
it was better to have a cushion of international funds
available to help protect the real.
"The country is going to appeal to the Fund when and if it
is needed," Cardoso said after meeting local leaders on a
campaign trip to the Amazonas region.
Brazilians harbour painful memories of how the IMF
intervened to help Brazil after Mexico declared a debt
moratorium in 1982.
tracey.ober@reuters.com))
Copyright 1998, Reuters News Service |
