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

To: hoyasaxa who wrote (11549)	1/13/1999 11:00:00 AM
From: Steve Fancy	Respond to of 22640

TEXT-Brazil cenbank chief's resignation statement Reuters, Wednesday, January 13, 1999 at 10:41 SAO PAULO, Jan 13 (Reuters) - Following is selected text from the resignation statement made by Brazil's Central Bank chief Gustavo Franco on Wednesday. "For some time I have been thinking of leaving the presidency of the Central Bank. The reasons for this are in the first place personal but mainly professional -- the wear-and-tear after five years of uninterrupted work." "There is also the need to look for new challenges and offer a chance to others with more impetus to widen the realm of actions at the Central Bank and consolidate the Real Plan." "Also for some time I have been warming up to the idea that we need more flexible currency and interest rate policies in order to overcome this crisis and return to growth. The world has changed and we need to respond to the new circumstances in a positive and creative way." "In truth, I have been saying for some time that an agenda of gradual stabilization would transform into an agenda of growth... Challenges rejuvenate people. It would never be my intention to serve as an obstacle to the natural reorientation of interest rate and foreign currency policies that the president wants." "It is natural that the two issues -- my resignation and the increased flexibility of interest rate and foreign exchange policies -- should be considered and it will be my successor'sjob to develop these policies." "I am now going on vacation during which time director Francisco Lopes will become interim president of the Central Bank and his name will be simultaneously submitted to the Senate for nomination by the president of the republic. "This does not end all of my collaboration with the government of President Fernando Henrique Cardoso. It is the president's clear wish that I continue working closely with him as an advisor." "The president has decided to create a council of economic advisors, currently being assembled, in which I will be involved and possible occupy a seat." Copyright 1999, Reuters News Service

To: hoyasaxa who wrote (11549)	1/13/1999 11:03:00 AM
From: Steve Fancy	Read Replies (2) \| Respond to of 22640

Brazil cenbank says IMF fiscal targets will be met Reuters, Wednesday, January 13, 1999 at 09:38 BRASILIA, Jan 13 (Reuters) - A Brazil central bank director said on Wednesday that the government's 1999 fiscal targets, agreed with the International Monetary Fund (IMF), remain in force despite an abrupt change to the country's foreign exchange band system. Speaking alongside new Central Bank President Francisco Lopes, International Affairs Director Demosthenes de Pinho Neto said also that lower interest rates following the modification will depend on approval of Brazil's fiscal austerity programme, now around two-thirds of the way through Congress. The IMF agreed to lead a $41.5 billion credit package to shore up Brazil's balance of payments in November in exchange for the fiscal austerity plan, which set strict targets for the budget deficit. Brazil aims to save or raise an additional $24 billion during 1999 to meet a primary budget surplus, before debt servicing, of 2.6 percent of GDP. Copyright 1999, Reuters News Service