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:

You May Also Like

Child carrying sibling looking through the trash in Brazil

Brazil’s Poor Are Too Peaceful While Their Kids Starve do Death Amid Plenty

Recent studies show that a Brazilian prisoner is twice as likely to have come ...

RAPIDINHAS

The ownership deeds for thousands of rural properties in various Brazilian states were revoked ...

Lula Is Supposed to Defend Brazil. Instead He’s Been on Bolivia’s Side

Brazil’s president came under fire from critics who say he caved into pressure from ...

Brazil Upgraded to Designer by Auto Industry Multinationals

Brazil is already used as an export platform by multinationals in the auto industry, ...

Brazilian Stocks Mirrors US Market and Fall

Latin American stocks were mixed, with Brazilian stocks dipping, in line with the U.S. ...

Morocco Gives Brazil One or Two Lessons in Trade

OCP Group (Office Chérifien des Phosphates), a Moroccan state-owned company that operates in mining, ...

A Planetary Workers’ Union Is Being Born in Brazil

A unified workers central union is expected to emerge from the fusion of the two ...

Viacabo Brazil Offers New PPV Technology

Norway-based Conax AS has launched a pilot of its new Conax CAS7 modular system ...

Brazil: 8 Ministers Leave Lula’s Cabinet to Run for Office

Brazilian President Luiz Inácio Lula da Silva has accepted the resignations of eight of ...

Brazil-Chile: TAM-LAN Merge Creates Largest Air Carrier in the Region

The merge of two major South American airlines will create the biggest carrier in ...