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Non-Tech : Auric Goldfinger's Short List -- Ignore unavailable to you. Want to Upgrade?

To: TRIIBoy who wrote (1194)	1/8/1999 10:32:00 AM
From: Sir Auric Goldfinger	Read Replies (3) \| Respond to of 19428

They'll spend this like drunken sailors on holiday:"Brazil Gets $1 Bln World Bank Loans to Fix Pensions, Poverty 1/7/99 12:47 Washington, Jan. 7 (Bloomberg) -- Brazil will get $1 billion in loans from the World Bank to bolster the country's efforts to overhaul the social security system and protect for the poor from the impact of the country's looming recession. ''Brazil's economic reform program... promises to bring growth and stability to Latin America's largest economy and hence to the entire region,'' said Shahid Javed Burki, vice president for the World Bank's Latin America department. Still, the loans come at a time when two of Brazil's biggest states are rebuffing the federal government's attempts to collect payments on outstanding debt. That standoff today triggered the biggest decline in Brazilian stocks and bonds in more than three months. Brazil has been cut off from the global capital markets since Russia's default on its debt in August spooked emerging market investors. It needs the World Bank and other international aid to supplement spending as it tries to cut its bloated budget deficit. Today's loans are part of the $4.5 billion the World Bank pledged to a $41.5 billion aid package put together last month by the International Monetary Fund. The money is being given on condition the government cut about $23.5 billion (28 billion reais) from the 1999 budget. The government has drawn $9 billion from that package prior to today's loans to supplement dwindling foreign currency reserves, now at a low of $36 billion, down from the $74 billion in August before the Russia crisis. Pension System The World Bank executive board approved a $757.5 million loan for Brazil to overhaul its pension system, make it more fair to all contributors and increase administrative efficiency, the bank said. About 18.4 million Brazilians collect pension payments from the federal government. The system will collect about $4.41 billion from state workers while paying out about $16 billion to 900,000 former federal employees this year. At the same time, the government will collect about $40 billion from workers at private companies and pay out $48 billion to 17.5 million retirees. The World Bank also approved a $252.5 million loan to help protect the country's poorest residents by providing access to low-cost health care and ensure children stay in school. The loans will carry a 9 percent interest charge and repayment is within eight years." --Jeremy Pelofsky in Washington (202) 624-1912 /mm