Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Telebras (TBH) & Brazil -- Ignore unavailable to you. Want to Upgrade?

To: Steve Fancy who wrote (21211)	8/2/2000 12:58:48 PM
From: Steve Fancy	Read Replies (2) \| Respond to of 22640

Brazil Govt Cuts 2000 Public Pension Deficit To BRR10.4B Dow Jones Newswires August 1, 2000 BRASILIA -- The Brazilian government Tuesday revised its projection for the 2000 public pension fund deficit to 10.4 billion reals ($1=BRR1.784) from BRR11.2 billion, following a narrower-than-expected deficit in the first half of the year. The public pension fund only reflects private sector workers. Pensions for public sector workers are tied in with their pay package and therefore can't be easily viewed separately. Speaking at a news conference, Minister for Social Security Waldeck Ornelas said the public pension deficit narrowed to BRR3.70 billion in the January-June period. This compares with BRR3.97 in the same period a year earlier. Ornelas said the better performance was boosted by higher employment, an improved economic scenario in Brazil and better-than-expected receipts. The release of the data followed a meeting between officials of the social security ministry and the International Monetary Fund. "This morning we were able to show the International Monetary Fund that the INSS (public pension system) is no longer a headache," Ornelas said. The minister added that he had explained to the IMF that the deficit is being exacerbated by discounts given to those entities that benefit from discounted social security payments. Those discounts will generate a deficit of BRR7.2 billion this year. Congress is expected to review these discounts during the 2001 budget proposal, which Ornelas said hopefully will lead to the elimination or reduction of some of the discount categories. The IMF is currently in Brazil for the sixth revision of the country's economic performance regarding a $41.5 billion aid package agreed to in 1998. The visit isn't expected to result in any changes to Brazil's year-end targets. However, the current primary sector surplus target of BRR38.4 billion, equivalent to 3.25% of gross domestic product, may be changed to reflect revised GDP figures for 2000. -By Diana Rochford, Dow Jones Newswires; (55 61) 99656883; diana.rochford@dowjones.com