World Bank ready to help Brazil if needed-sources
Reuters, Tuesday, September 22, 1998 at 10:51
WASHINGTON, Sept 22 (Reuters) - The World Bank is ready to
offer new loans to Brazil if an international rescue package is
arranged, bank sources said on Tuesday.
"The World Bank stands ready to be a significant
contributor in any international package of support agreed in
support of Brazil," a World Bank source said.
World Bank sources declined further comment.
The Inter-American Development Bank was expected on
Wednesday to approve a record $1.1 billion loan for Brazil. If
approved, it would be the biggest loan the IADB has ever
issued. The previous record, a $750 million credit, was
extended to Mexico in 1995 to help the country recover from the
effects of the peso crash.
Brazilian government officials said last week they were in
talks with the International Monetary Fund and other lending
agencies to create a "crisis prevention program." But they have
declined to give details of the cash value or shape of any
potential deal.
An international monetary source said on Tuesday that
Brazil has not asked the IMF for financial help, although the
two sides are discussing policy options.
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Copyright 1998, Reuters News Service |
