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

To: wl9839 who wrote (15298)	5/14/1999 1:22:00 PM
From: wl9839	Read Replies (1) \| Respond to of 22640

Brazil's Jan-Mar Primary Budget Surplus BRR9.235 Bln Dow Jones Newswires BRASILIA -- The Brazilian government Friday announced a primary budget surplus of 9.235 billion reals ($1=BRR1.651) in the first quarter of 1999, easily surpassing the goal set with the International Monetary Fund as part of a $41.5 billion aid package. The first quarter figure was BRR3.23 billion higher than the BRR6.006 billion target specified in the aid agreement, and was well above market expectations. Brazil's fiscal savings in the first quarter were equivalent to 4.12% of gross domestic product. The primary surplus goal is considered the main performance criterion in the IMF-led accord. Brazil agreed to meet a year-end primary surplus of BRR30.018 billion, or 3.1% of GDP. Analysts had expected a first quarter primary surplus in the range of BRR7.5 billion-8 billion. With the first quarter performance, Brazil is well on track to meet the first half IMF goal of BRR12.88 billion. In the 12 months to the end of March, Brazil registered a primary budget surplus of BRR6.275 billion, or 0.69% of GDP. That compares with a primary surplus of 0.51% to the end of February. "It's important to stress that we had privatization receipts of some BRR2 billion and other unexpected revenue of another BRR2 billion in the (first quarter)," said Altamir Lopes, head of the central bank's economic department. "But compared to the first quarter last year, excluding the extraordinary revenue, the growth of the surplus is significant." Brazil's primary surplus in the first quarter of 1998 stood at BRR3.069 billion. Asked if Brazil "was learning to save," Lopes said: "Yes, I think we are." The federal government represented the lion's share of the surplus figure in the first quarter, saving BRR9.393 billion in the first quarter. The federal figure includes a small deficit posted by the central bank. State governments posted a BRR68 million primary deficit, while municipalities showed a BRR1.058 billion surplus. Government-run companies at all levels tallied a primary surplus of BRR960 million. The social security system for private sector employees, known as INSS, continued to drag down the overall performance, with a BRR2.107 billion deficit. As expected by the market, Brazil's 12-month to March nominal public deficit - which includes debt servicing costs - narrowed to 12.3% of GDP, at BRR111.452 billion. That compares with an end-February figure of BRR126.185 billion, or 14.0% of GDP. Analysts had anticipated the decline in the nominal deficit owing to the strengthening of the real - which ended March at BRR1.72/dollar after weakening to BRR2.20/dollar earlier in the month - and lower interest rates. Those two factors also helped cut Brazil's net public debt, which stood at BRR470.317 billion or 48.2% of GDP at end-March. At the end of the previous month, the debt stood at BRR500.847 billion, or 51.9% of GDP. The government has said that stabilizing the debt/GDP ratio is its primary aim. As part of the agreement with the IMF, Brazil pegged the 1999 debt/GDP ratio at 49.3%, which compares with a 42.6% figure at end-1998.