• Categories
  • Archives

In Surprise Move, Brazil Decides to Pay Off Its US$ 15 Billion IMF Debt

Brazil announced its intention to make an early repayment of its entire outstanding obligations to the International Monetary Fund (IMF) amounting to SDR 10.79 billion (about US$ 15.46 billion).

SDR, or Special Drawing Right is the artificial currency created by the IMF, which is based upon the currency of several countries.

The outstanding obligations of Brazil had been contracted under the Stand-By Arrangement that was approved by the Executive Board on September 6, 2002 and extended and augmented on December 12, 2003.

Mr. Rodrigo de Rato, the Managing Director of the IMF, said, "I very much welcome Brazil’s decision to repay its outstanding obligations to the Fund. This decision reflects the growing strength of Brazil’s external position, especially continuing substantial trade and current account surpluses and strong capital inflows that have greatly boosted reserves and reduced external debt.

"More fundamentally, the excellent track-record of policy management by the Brazilian authorities has provided the basis for the consolidation of market confidence, the sustained improvement of macroeconomic performance, and an improvement in the profile of domestic as well as external debt.

"The Fund looks forward to continuing a close and constructive relationship with the Brazilian authorities, including in key areas such as public investment," de Rato added.

Total drawings by Brazil under the Stand-By Arrangement were equivalent to SDR 17.20 billion (about US$ 24.65 billion), out of a total of SDR 27.4 billion (about US$ 39.23 billion) that were made available. Under the original schedule, the final repayment of outstanding loans from the IMF would have taken place in 2007.

On July 22, 2005, the Brazilian authorities repaid early the outstanding Supplemental Reserve Facility (SRF) obligations to the IMF amounting to SDR 3.42 billion (about US$ 4.91 billion).

The Executive Board met on December 7, 2005 to consider Brazil’s performance since the end of its program, and a summary of that discussion will be issued shortly. The next Article IV consultation is expected to take place in March 2006.

IMF – www.imf.org

Tags:

  • Show Comments (1)

  • Guest

    Lula has been in government for just 3 years and has already suceeded to reinsert Brazil in the way of development. Inflaction is controled in a 5% year rate; employment rising up regularly; foreign debt beeing honored in advance – it corresponds now to 1.4 times the country’s GDP, 3 years ago it was as high as 4.4 times the GDP!; foreign trade performing excelent results – in 2005 hit an astonishing US$44 billion surplus; U$57 billion value international reserves – the highest ever registered; a highly responsible fiscal politic recording an annual surplus of 5.28%, allowing the Government to honor the domestic debt. For all these reasons the risk for investment in Brazil is sharply falling down and now it’s about 300 rate.
    Lula means development and responsability. That’s the reason Lula will be re-elected president in 2006!!!!

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

Brazilians Are Too Cordial to Love Moore

Given all the anti-Bush sentiment in Brazil, I had expected the documentary film “Fahrenheit ...

Brasí­lia Declaration Urges Nuclear-Free Zone for Middle East

Brazilian President Luiz Inácio Lula da Silva participated yesterday in the third and last ...

74% of Jobs Created in Brazil in January Came from Small Companies

In Brazil, micro and small companies were responsible for 74% of the 181,419 new ...

Brazil’s Social Movements Call for Mobilization Against Corruption

Brazil’s Coordination of Social Movements (CMS) issued a Letter to the Brazilian People, calling ...

Brazil’s Embraer Hands JetBlue First of 101 Jets

Brazilian aircraft manufacturer Embraer delivered today its first Embraer 190 to American airline JetBlue ...

Presidential candidate Rousseff Wants More State Capital in Brazil’s Airlines

Dilma Rousseff, the Brazilian presidential candidate handpicked by president Luiz Inácio Lula da Silva, ...

New Mexico President Turns South to Brazil, Venezuela and Cuba

Mexican President-elect Felipe Calderon hardly seems like one to chart a new foreign-policy course. ...

Some Brazilians in Germany Have Only One Dream: To Go Back Home

The weekly German newsmagazine Der Spiegel has just published a long article about the ...

Boeing 777-300ER with the TAM logo

Brazil’s TAM Becomes First LatAm Carrier to Fly the Boeing 777-300ER

Brazil's largest airline TAM and American aircraft manufacturer Boeing announced today  conclusion of a ...

Brazil Convention: Countries Far from Consensus on Traditional Knowledge

The protection of traditional knowledge is one of the main themes that have been ...