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 (9206)	10/27/1998 5:37:00 PM
From: Steve Fancy	Read Replies (1) \| Respond to of 22640

Brazil's Cardoso outlines plan to save economy Reuters, Tuesday, October 27, 1998 at 17:25 RIO DE JANEIRO, Oct 27 (Reuters) - Brazilian President Fernando Henrique Cardoso pledged sweeping budget cuts and unspecified tax hikes on Tuesday in a long-awaited fiscal plan to save Latin America's biggest economy from crisis. Speaking on national television, Cardoso said he planned to shave an "unprecedented" 8.7 billion reais from Brazil's 1999 budget to cut a gaping shortfall that amounts to some 8.0 percent of gross domestic product. "We are proposing to Congress a cut of 8.7 billion (reais) ($7.3 billion) for 1999. To go beyond that would mean a paralysis of the state's essential activities," Cardoso said. "At this time when Brazil is stoutly confronting a serious international financial crisis, we must be united and think of the country's highest interests." The three-year fiscal plan is viewed as crucial to restoring investor faith in Brazil's battered economy -- the world's eighth largest -- and clearing the way for a $30 billion credit line led by the International Monetary Fund. Brazil must show it can cut its huge budget deficit to qualify for the credit line. The 8.7 billion reais cut is expected to be followed by even more in tax hikes to take the total 1999 savings package to some $20 billion in 1999. The Finance Ministry is set to detail the tax hikes on Wednesday. Copyright 1998, Reuters News Service