• Categories
  • Archives

IMF’s Advice to Brazil: ‘Share the Riches’

The Managing Director of the International Monetary Fund (IMF), Rodrigo Rato, said today, in a note released by the institution, that increased Brazilian government investment is important to raise productivity and remove the bottlenecks that block economic development.

In the note Rato commends Brazil’s economic policy and says that the advances achieved by the Brazilian government are quite impressive.


“President Lula’s administration has been upholding consistent macroeconomic policies and formulated an ambitious roster of structural reforms. These courageous policies bore fruit,” says Rato, citing the reduction of Brazil’s vulnerability and the country’s capacity to protect itself against external shocks.

Rato also refers to the growth in the Brazilian Gross Domestic Product (GDP), which he regards as solid, and the good export performance.


According to him, the agreement that will be concluded this month between the government and the IMF is proceeding in accordance with the expectations of the Fund’s executive board.

“My conversations with President Lula focused on future challenges. I share the President’s optimism over Brazil’s growth prospects. We agree that it is essential to ensure the sustainability of the economic recovery in the medium term through the maintenance of prudent macroeconomic policies, new advances in the structural reforms, and constant attention to guarantee that the benefits of growth will be shared with the less privileged,” Rato added.


Last month, an International Monetary Fund mission visited Brazil for a third revision of the almost US$15 billion preventive loan Brazil negotiated at the end of last year.


The head of the mission, Charles Collyns, said he would recommend approval. That will give Brazil the right to withdraw funds totalling US$ 1.3 billion.


However, both president Luiz Inácio Lula da Silva and the Minister of Finance, Antonio Palocci, have said the country will not touch the money. They have also said that Brazil does not intend to renew the agreement when it expires in 2005.

Agência Brasil

Tags:

  • Show Comments (0)

Your email address will not be published.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

Brazil Offers Preferential Treatment to Africa and India

The Manaus Industrial Pole, in the city of Manaus capital of the northern state ...

US Wants a Sharper Eye on Brazil’s Border

A report by the US State Department informs that Brazil is cooperating with the ...

Brazilian company Fris Moldu Car

Late Wages Lead Brazil Workers to Take Over Factory Where Lula Once Worked

Workers at the Fris-Moldu-Car plant outside of São Paulo have occupied the factory since ...

Brazil-Emirates Maiden Direct Flight Has Brazilians at the Helm

The Emirates airline flight that left Guarulhos International Airport, in São Paulo, on the ...

Brazil Ambassador Deplores Lack of International Help to Haiti

“There has been a reduction in crime in certain spots where the population was ...

Palestinians and Israelis Can Live Side by Side in Peace. Look at Brazil

BrasÀ­lia, the capital city of Brazil, paid two homages to the Palestinian people this ...

Biodiesel Scania bus being used in London

Brazilian Ethanol Powers Double-Decker London Bus

London Mayor Ken Livingstone is about to start trials of London's first bus fueled ...

China Gets Closer to Latin America with a US$ 350 Million Check

In a signing and flag placement ceremony held on Monday at the Inter-American Development ...

Montenegro Republic Buys 116-Seat Brazilian Jet

Brazilian aircraft manufacturer Embraer sold its first Embraer 195 jet to Montenegro Airlines, this ...

Brazil: Zero Hunger Ahead of Schedule

Brazil announced that is Zero Hunger program to end hunger in the poorest areas ...