Brazil’s Minister of Finance, Antonio Palocci, announced on national television and radio network, this Monday, March 28, that Brazil will not renew its Stand-By Arrangement with the International Monetary Fund (IMF).
Palocci recalled that 2004 was a great year for the country, which grew 5.2%, the highest rate in 10 years. He said that Brazil will keep this pace up and that public budget and spending will continue being controlled with discipline and transparency.
The Minister stated that the country will keep the fiscal responsibility up, which he considered fundamental for Brazilian record-breaking numbers on exports, industrial production, and GDP (gross domestic product) growth.
“We cannot forget that if we reached this point, it was with great effort and fiscal responsibility,” he said.
Palocci also said that even recognizing “the great importance of IMF’s help during difficult moments in our country’s History,” it was essential to move beyond the long cycle of financial dependence “to follow our destiny to be a great and strong nation.”
According to the Minister, Brazil promoted a strong adjustment is its economy in order to raise government reserves and its capacity to honor external and internal debts.
“At the same time, we controlled inflation firmly. All these measures had a great repercussion worldwide, giving reliability and credibility to the new government of Brazil. And with high reliability and credibility, it was possible to grow again,” he said.
Palocci believes that Brazil will keep growing and creating more jobs in 2005:
“International credibility, financial independence, economic growth, quality jobs generation, this is all what Brazil needs to improve wealth distribution, reduce poverty and social injustices. Because, after all, this is the great objective of President Lula’s government.”