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

To: Steve Fancy who wrote (9317)	10/30/1998 2:41:00 PM
From: Steve Fancy	Respond to of 22640

Brazil's Malan stands by current forex policy Reuters, Friday, October 30, 1998 at 13:57 RIO DE JANEIRO, Oct 30 (Reuters) - Two days after unveiling an ambitious fiscal plan to boost confidence in the economy, Brazilian Finance Minister Pedro Malan reiterated Friday that the government will not be touching its foreign exchange policy. "We are not going to change the Brazilian exchange rate policy," Malan told a gathering of foreign correspondents. After the $84 billion fiscal plan was released, the market anxiously awaits the formal announcement of a loan package of $30-$45 billion for Brazil led by the International Monetary Fund (IMF). Malan said the government already has the support of the IMF along with the Group of Seven (G7) leading industrial nations for the fiscal austerity proposal. He said he had just been informed of the G7 finance ministers and central bankers' declaration backing Brazil's policy commitments. Malan downplayed the pledges to be listed in the "letter of intent" Brazil will have to sign with the IMF to secure the financing, noting that they will be the same as those in the fiscal plan. "Brazil's pledge and commitment is in the fiscal stability program," Malan said. "The ownership of the program has been recognized from the very beginning by the Fund, by the World Bank, by the IDB, by the G7 governments. It is a Brazilian program that they would consider supporting." Malan said that the letter of intent is not yet ready. The government is sending senior finance and central bank officials to Washington Friday to discuss the letter of intent with the IMF. Malan said both he and Central Bank President Gustavo Franco will have to sign the letter, but it isn't clear if the signing would have to take place in Washington. Copyright 1998, Reuters News Service