Brazil cenbank says IMF fiscal targets will be met
Reuters, Wednesday, January 13, 1999 at 09:38
BRASILIA, Jan 13 (Reuters) - A Brazil central bank director
said on Wednesday that the government's 1999 fiscal targets,
agreed with the International Monetary Fund (IMF), remain in
force despite an abrupt change to the country's foreign exchange
band system.
Speaking alongside new Central Bank President Francisco
Lopes, International Affairs Director Demosthenes de Pinho Neto
said also that lower interest rates following the modification
will depend on approval of Brazil's fiscal austerity programme,
now around two-thirds of the way through Congress.
The IMF agreed to lead a $41.5 billion credit package to
shore up Brazil's balance of payments in November in exchange
for the fiscal austerity plan, which set strict targets for the
budget deficit.
Brazil aims to save or raise an additional $24 billion
during 1999 to meet a primary budget surplus, before debt
servicing, of 2.6 percent of GDP.
Copyright 1999, Reuters News Service
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