IMF looking at Brazil situation, no comment yet
Reuters, Wednesday, January 13, 1999 at 10:53
WASHINGTON, Jan 13 (Reuters) - The International Monetary
Fund is looking at the situation in Brazil but has no comment
at this stage, an IMF spokesman said on Wednesday.
The spokesman could not say whether the fund had been
informed in advance of Brazil's plans to effectively devalue
its currency, the real. "We are looking into the situation, but
for the time being we do not have anything to say," he said.
The IMF threw Brazil a $41.5 billion lifeline last month,
including $18 billion of its own money in an international
rescue package designed to stave off financial collapse and
help the Brazilian authorities protect the real.
An initial IMF payment of $5.3 billion was transferred soon
after the loan was approved on Dec. 2 and Brazil can draw on an
additional $4.5 billion by late February, provided it meets the
terms of the reform package underpinning the loan.
The IMF has said this payment could be brought forward if
Brazil needs the money earlier.
Brazil, faced with massive currency outflows and a
crumbling stock market, effectively devalued the
inflation-busting real by almost eight percent on Wednesday.
898-8383, washington.economic.newsroom@reuters.com))
Copyright 1999, Reuters News Service
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