Rubin says Brazil doing good job on reforms
Reuters, Tuesday, October 27, 1998 at 16:24
WASHINGTON, Oct 27 (Reuters) - U.S. Treasury Secretary
Robert Rubin said on Tuesday that Brazil was doing a good job
on economic reforms, but he declined to comment on whether
Washington would contribute to an expected financial package.
"Brazil is very important for the United States, the
hemisphere is very important for the United States," Rubin told
reporters after a meeting with Colombian President Andres
Pastrana. "(Brazilian President Fernando Henrique) Cardoso is
going a very good job on reforms."
Cardoso is expected to unveil the broad outline of a new
fiscal plan later on Tuesday and full details of the plan are
due on Wednesday.
The proposals, expected to include budget cuts, tax
increases and other measures, should pave the way for an
international rescue package of an estimated $30 billion,
including up to $15 billion from the International Monetary
Fund.
Market analysts expect the United States to contribute
bilateral funds to the package for Latin America's largest
economy, but Rubin declined to comment on whether this was
likely or on whether the deal was being delayed.
A U.S. contribution could come from Treasury's special
Exchange Stabilization Fund, but might raise hackles in
Congress, where Republicans resent Rubin's ability to tap this
fund without seeking approval from the legislature.
898-8383, washington.economic.newsroom@reuters.com))
Copyright 1998, Reuters News Service |
