Brazil Congress to OK austerity steps soon-Cardoso
Reuters, Wednesday, January 13, 1999 at 11:51
SAO PAULO, Jan 13 (Reuters) - Brazil's President Fernando
Henrique Cardoso moved to calm panicked markets Wednesday,
saying that Congress will soon approve key austerity measures
needed to gain credibility abroad.
Cardoso also said the Central Bank's decision to widen the
foreign exchange trading band, considered an effective 9
percent devaluation by analysts, was only a "technical"
modification. He also assured investors that Brazil will meet
all internal and external debt obligations.
"The Congress already approved 70 percent of what we've
asked in terms of fiscal austerity. What is left to approve is
the federal budget, which will be approved," Cardoso told
reporters at the presidential palace.
Cardoso said he expects some measures to be passed
Wednesday and urged legislators to push others, like a
controversial increase in the CPMF financial transactions tax,
through.
Copyright 1999, Reuters News Service
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