Brazil’s Minister of Finance, Antônio Palocci, informed the International Monetary Fund (IMF) that Brazil will not renew its agreement with the Fund.
The Brazilian government has until Thursday, March 31, to transmit its decision.
The most recent agreement with the Fund was signed in September, 2002, and renewed on a standby basis at the end of 2003, during the transitional period between the previous Brazilian Administration and the current one.
Of the total of US$ 41.75 billion authorized by the Fund, Brazil withdrew US$ 26.3 billion, which were added to the country’s international reserves. These funds could not be spent by the government.
The final stage of the agreement with the IMF was concluded at the beginning of last week, when the Fund’s board of directors approved the tenth review of the agreement.
Translation: David Silberstein