Charles Collyns, head of the International Monetary Fund (IMF) mission that is in Brazil, said today, as he was leaving the Ministry of Finance in BrasÀlia, that the country is doing very well in the administration of government accounts and the fulfillment of fiscal targets.
“It is very good that the country is managing to fulfill these targets and surpass them, which has helped Brazil reduce government debt more rapidly than the government had previously announced. This is very positive and has helped Brazil strengthen its position internationally,” he stated.
The IMF experts arrived in São Paulo on November 1st and proceeded to Brasília yesterday.
They will be meeting with representatives of the government through the 10th to gather information on the Brazilian economy and the policies adopted to control inflation and maintain the fiscal adjustment.
This is the ninth and next to the last review of the US$ 40.1 billion agreement signed in September, 2002 and renewed last December.
The Minister of Finance, Antônio Palocci, has said that Brazil does not intend to renew the agreement, which expires at the end of this year.
Collyns, declared that he is “strongly impressed” by the country’s economy which is growing at a steady rate.
He also said he was satisfied with the information he received from the president of the Central Bank, Henrique Meirelles, concerning monetary and economic policy..
Collyns called the policies “prudent,” and said he was pleased with them.
As usual, the mission will submit a report to the IMF board. If the report is accepted Brazil will have withdrawal rights totalling US$1.4 billion.
However, the Brazilian government has already said it does not intend to withdraw the funds because it sees the December 2003 agreement as a preventive measure.
Translator: David Silberstein