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 (9737)	11/16/1998 5:15:00 PM
From: Steve Fancy	Respond to of 22640

IADB Head Expresses Confidence In Brazil's Econ Measures Dow Jones Newswires PUNTA DEL ESTE, Uruguay (AP)--The president of the Inter-American Development Bank expressed confidence Monday in Brazil's tough measures to surmount the economic crisis that spurred an international bailout. Interviewed before addressing a convention of international newspaper publishers, Enrique Iglesias said the Brazilian government had come up with a solid program of stringent measures to counteract the crisis. "They made a very credible program both internally and externally, but they will manage it and the international support will give it even more credibility," said the president of the Washington-based lending bank. Iglesias was speaking in this Atlantic resort at the invitation of the Inter American Press Association, an organization grouping hundreds of newspaper editors from throughout the Western hemisphere. Organized by the International Monetary Fund, the rescue package announced earlier this year makes $41.5 billion available to Brazil over the next three years. About $37 billion will be on tap if needed in the next 12 months. The assistance was offered after Brazilian President Fernando Henrique Cardoso announced a series of measures Oct. 28 to curb government spending and raise taxes. The U.S. will contribute $5 billion. Cardoso's government is seeking support in the Brazilian parliament for crisis measures. The government measures, which must be approved by Congress, would save $24 billion in 1999 and $80 billion by 2002. Iglesias was confident the Brazilian parliament would give strong support: "So far they gave a very good message with a recently adopted statement of the social security reforms." "So I think the Brazilians understand, and the politicians, that they have to do this this in order to preserve their excellent experience with the plan Real," he added, a reference to a plan to keep Brazil's currency stable. Some Brazilian economists had worried that the new program, which requires the government to follow through on pledges of tough budget-cutting, will cause the economy to weaken further and send unemployment soaring. But Iglesias discounted such scenarios: "I don't believe in the kind of recession that one would imagine." He said Brazil has a very resilient economy and "if the trend in the international economy continues as we are seeing now, I think we can go smoothly through to a better level."