Brazil Cheers IMF Approval of Brazilian Pilot Plan

The International Monetary Fund (IMF) authorized a Brazilian pilot project that will allow the government to detach US$ 3 billion from its calculation of the primary surplus (the difference between the revenues and expenditures of federal and state governments and state enterprises, excluding debt payments).

The resources will be used for public investments, chiefly on infrastructure projects. This step constitutes a positive response to a Brazilian government grievance since the first half of last year.


The measures authorized by the IMF are expected to detach the equivalent of US$ 1 annually for selected investments between 2005 and 2007.


According to an official note issued by the Fund, the Brazilian pilot project in no way implies a change in the way expenses are treated in calculating the primary surplus.


The Minister of Finance, Antônio Palocci, cheered the arrangement made by the Fund. The measure is unrelated to the existing agreement between Brazil and the IMF that ends in March.


“I think it is very important for Brazil, because it represents an interpretation that Brazil put together with other countries and which now has a significant backing from the Fund,” the Minister commented.


The Federal Budget approved in December already includes eight infrastructure projects that will compete for the initial funds covered by the pilot project.


These projects include highway restoration, irrigation programs, improving federal receipts, integration of meteorological data, and even the creation of the Amazon Biotechnology Center.


Translation: David Silberstein
Agência Brasil

Tags:

  • Show Comments (0)

Your email address will not be published. Required fields are marked *

comment *

  • name *

  • email *

  • website *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Ads

You May Also Like

Brazil’s Embargo-Proof Cattle

Brazil’s Ministry of Agriculture and cattle ranchers are joining forces in an effort to ...

com.br

The number of Internet users in Brazil has surpassed the 1 million mark and ...

Not So Clean

"Part of our job is trying to educate people in Brazil about the enormous ...

Brazil Petrobras’s Production Grows 10% to 2.3 Million Barrels a Day

Brazil’s state-owned Petrobras’s domestic production of petroleum and gas attained a daily average of ...

Fidel Castro Calls Brazil’s Lula Brave for Backing Barack Obama

The president of Brazil, Luiz Inácio Lula da Silva, met with former Cuban president ...

Two Visions of Brazil: A Shantyless or Shantyful Country

More than any other Brazilian city, São Paulo can serve as a witness of ...

Brazil’s Lula Will Not Attend Arafat’s Funeral

In an official note, the Brazilian Ministry of Foreign Relations lamented the death of ...

World Debates How to Make More Peace and Less Sex Tourism

The city of Porto Alegre, in the southernmost Brazilian state of Rio Grande do ...

It’s Time for the U.S.-Brazil’s Civil Society to Stand Up and Be Counted

For over a decade United States-Brazil relations have been tangled up in deliberations for ...

Brazil’s Chancellor Busy in Europe Dealing with World Trade

Brazilian Minister of Foreign Relations, Celso Amorim, lead the G-20 ministerial meeting Wednesday, November ...