IMF Checks Brazilian Books. A-OK! It Seems.

Technical experts from the World Monetary Fund (IMF) concluded, yesterday, their visit to various Brazilian Ministries to gather information on how well the Brazilian government has complied with the goals set in the agreement between the two parties.

The mission, headed by the economist, Charles Collins, went to the Central Bank and the Ministries of Mines and Energy; Finance; Development, Industry, and Foreign Trade; and Planning.

The mission has been in Brazil since January 26 for the tenth and last evaluation of the US$ 30 billion agreement, signed in September, 2002, and renewed in December, 2003.

If the evaluation is approved, Brazil will be able to withdraw approximately US$ 1.4 billion. Approval, which will only be announced when the Fund’s board of directors meets, is likely, since the chief targets were met.

Last year’s primary surplus, for example, which was supposed to end the year with US$ 27.2 billion (R$ 71 billion), according to the agreement, actually accumulated US$ 31.1 billion (R$ 81.1 billion).

It is also likely that the government will not withdraw the funds to which it is entitled. When he announced the renewal of the agreement, in September, 2003, the Minister of Finance, Antônio Palocci, said that the government would only use these resources if the government was facing an economic crisis.

Since then all the reviews conducted during the course of last year approved Brazil’s performance, yet Brazil declined to use the funds that were made available. Minister Palocci has stated, nonetheless, that the decision on a new loan will only be made in March, when the current agreement expires.

Translation: David Silberstein
Agência Brasil


You May Also Like

Brazil: Lula Joins Sí£o Paulo Campaign at Last

Well, it looks like President Lula is finally going to São Paulo. But it ...

Best-seller books, plays & movies

PLAYS Rio As Malandragens de Scapino (Scapino’s Rogueries) — Molière’s comic classic about a ...

Brazil Ready to Boost Gas Prices

Brazil’s state-owned oil giant Petrobras reports that growing demand for gas may mean a ...

US Wants Less Red Tape in Brazil

The president of the American Chamber of Commerce of Rio de Janeiro, Joel Korn, ...

India rocket on launching pad

Left Behind, Brazil Talks Space Cooperation with India

Cooperation between Brazil and India in the space area was the theme of a ...

Brazil’s Small Businesses Grow Modest 1.9% in 2005

The year of 2005 was, on average, positive for micro and small companies in ...

A cane-sugar plantation in the Northeast of Brazil

Planting Sugarcane and Reaping Poverty and Eco-Degradation in Brazil

On January 22 the Lula administration announced it will increase federal funding for Brazil’s ...

Brazil Gets into the Business of Building Ocean Liners

In fact, Brazilian shipbuilders are beyond eyeing the transatlantic ocean liner market and are ...

Brazil’s Varig Fired Workers Vow to Fight in Court “Plunder” by New Owners

Brazilian flag carrier Varig, which was recently sold to VarigLog, a former subsidiary, announced ...

Brazil and Argentina Condemn Honduras Elections But Can’t Make Mercosur Work

Brazilian analysts say that the political coincidences of the two-day Mercosur presidential summit held ...