Brazil’s Vice Praises IMF Payoff and Blasts High Interests

Brazil’s Minister of Finance, Antonio Palocci, has announced that Brazil will anticipate the payment of an International Monetary Fund loan of US$ 15.5 billion, which will mean an economy of around US$ 900 million in interest payments.

The loan was to have been paid off in installments ending in December 2007.

Palocci pointed out that whereas the country’s total reserves were US$ 15 billion in 2003. Today the country has US$ 51 billion, above the IMF loan amount, so the payment will not have a negative effect on its international reserves.

Brazil’s Vice President and Defense Minister, José Alencar, stressed that the decision to pay off the IMF was the right one:  "This is going to convey to the world the valuable information that Brazil is a country where you can invest without risk,"  he commented, during a hearing before the Senate’s Foreign Relations and National Defense Commission.

Alencar, who is a prosperous businessman, once again criticized Brazil’s  high interest rates and said that the tax burden, the amount of tributes paid by the country in connection with the value of what is produced,  cannot get any higher.  "We cannot think about raising either the tariffs, or  the tax burden in Brazil", he stated.

"We don’t need either inflation or senseless interest rates like the ones we have in order to fight inflation, because there are other instruments that can be used", the Vice President added, referring to the monetary policy carried out by Brazil’s Central Bank.

ABr

Tags:

Ads

You May Also Like

How Brazil with India’s Help Secured a WTO More Palatable Declaration

The sixth Ministerial conference of the WTO ended on December 18,  with the adoption ...

Brazil to Sell Fish to World’s Largest Fish Producer

Brazil may export fish to China and thus extend the market beyond what is ...

Brazil Cuts 5% of Ethanol Added to Gasoline

The Brazilian federal government announced that the percentage of alcohol mixed with gasoline sold ...

200 People Feared Killed Under Mudslide in Niterói, Rio de Janeiro

200 people may have been killed in a landslide in a Rio de Janeiro ...

US Tries to Choke Off Hezbollah Funds at Brazil/Argentina/Paraguay Border

The Bush administration took action Wednesday aimed at choking off a major fundraising channel ...

An Arab Language Primer for Brazilian Kids

Every Arab child should know the meaning of the words "buchar", "buza" and "lêr-rebe", ...

Brazil’s Congress All Tied Up with Corruption Inquiries

Another Parliamentary Investigation Commission (CPI, Comissão Parlamentar de Inquérito) will begin work today in ...

In Brazil, High Interests Are a Rich’s Best Friend

Brazil’s annualized benchmark interest rate of 19.75% – one of the highest in the ...

Boeing Tragedy: Aviation Leaders Beg Brazil to Not Indict Air Controllers

Several international aviation organizations including the  Flight Safety Foundation and the National Business Aviation ...

Led by Cereals Brazil Agribusiness Reaches Record Export

Brazilian agribusiness exports generated US$ 4.287 billion in September, an increase of 12.2% when ...