Latam contingency fund not central to IMF thinking
Reuters, Thursday, September 24, 1998 at 11:19
WASHINGTON, Sept 24 (Reuters) - The idea of a "contingency
fund" for Latin America, suggested by Brazilian President
Fernando Henrique Cardoso, is not the International Monetary
Fund's central focus, a senior official said on Thursday.
The official, who spoke on condition he was not identified,
said the IMF would be ready to assist Brazil if Brazil needed
the money and if its policies were strong and credible. But
Brazil had not asked for financial help, he added.
"We will be ready to contribute if requested and needed,"
he said. But he added, "We are not yet there for the central
reason ... that they have not yet asked for it."
The official praised policies announced on Wednesday by
Cardoso, who promised to set a timetable to balance the budget
and seek congressional approval for tax reforms.
He said cash shortages at the IMF would not prevent a
rescue package if one was needed, noting that money was
available in the General Arrangements to Borrow, an emergency
fund to be used if problems threaten world economic stability.
"There would be no "rationing" of an IMF contribution to a
Brazilian rescue deal, he added.
The official also said that no formal decision had been
taken on whether to create a contingency fund for Latin
America. He said money from such a fund would only be activated
"in the context of agreements with us."
"It's an interesting idea, but at this stage no formal
decisions whatever have been taken," he said.
"It is an idea which is not the central idea nor the
central focus of the decisions we had here two weeks ago. It is
not central to our discussions with individual countries."
898-8383, washington.economic.newsroom@reuters.com))
Copyright 1998, Reuters News Service |
