World Bk Pres Sees Brazil Bailout "In Next Few Days"
Dow Jones Newswires
UNITED NATIONS -- The International Monetary Fund will announce
what is expected to be a $30 billion aid package for Brazil in the coming
days, World Bank President James Wolfensohn said Friday.
A delegation of Brazilian officials is expected to arrive in Washington this
weekend for talks with the I.M.F. on the package. Brazil's team will be led
by Finance Ministry Economic Policy Director Amaury Bier, leading
negotiator with the IMF over the past few months.
Wolfensohn, in New York for a meeting of the heads of U.N. agencies,
declined to comment on details of the I.M.F. plan. The standby loan is
expected to combine at least $30 billion from the fund and other lending
agenies, including the World Bank, as well as direct contribution from the
U.S. and other industrial nations.
"It'll all be announced in the next few days," Wolfensohn said, referring to
the aid package.
Earlier this week, Brazil announed a fiscal austerity plan aimed at saving 28
billion reals (BRR) ($1=BRR1.19) next year. The controversial measure,
which relies heavily on tax increases and pension payments from workers,
now goes to the Brazilian Congress.
A tough plan was considered a prerequisite for Brazil to receive I.M.F.
funding. Wolfensohn said the proposal appears to meet I.M.F. standards.
"I think it shows that the governments taking very strong measures in terms
of fiscal, monetary goals," Wolfensohn said. "Now it's up to the Congress
to approve it. Hopefully that'll take place and when it does, I think they've
got a very foward looking program."
-By Jim Efstathiou; 201-938-2062;
jim.efstathiou@cor.dowjones.com |
