Скачать или смотреть BRAZIL: IMF APPROVES LOAN FOR BRAZIL

(13 Nov 1998) English/Nat
The International Monetary Fund (I-M-F) has announced its approval of a long-expected 41.5 billion (b) U-S dollar rescue package for Brazil designed to stop global financial turmoil from spreading to Latin America.
Under the programme, Brazil becomes the first recipient of a new sort of financial assistance proposed by President Clinton.
The proposal allows countries access to large lines of credit that they can draw on as needed providing they continue to follow I-M-F-approved economic policies.
The package is designed to assure financial markets that Brazil will have sufficient funds to pay its international obligations while it is putting its fiscal house in order.
At a press conference on Friday in Washington D-C, the Managing Director of the International Monetary Fund (I-M-F) outlined the content of the package.
SOUNDBITE: (English)
"Official creditors- multilateral and bilateral- will provide support totalling more than 41 billion (U-S) dollars over the next three years, roughly 37 (b) billion of which is available if needed over the next 12 months. I say 'if needed' because this is a programme which has an important precautionary character and Brazil of course is free to draw on it or not. "
SUPER CAPTION: Michel Camdessus, I-M-F Managing Director
Camdessus said that as part of the agreement, Brazil committed itself to reducing its 65 (b) billion U-S dollars budget deficit through spending cuts and other measures.
He said this would eliminate the need for a formal debt roll over that has been part of the I-M-F's Asian rescue packages.
SOUNDBITE: (English)
"The way is now open for the international community to provide financial support to Brazil that will enhance market confidence in the government's economic policies and help ensure the success of the country's programme."
SUPER CAPTION: Michel Camdessus, I-M-F Managing Director
In what I-M-F called an innovative approach, five billion (b) U-S dollars will made available on a floating basis in the first half of next year whenever Brazil decides it needs the money.
The I-M-F is expected to contribute between 15 (b) billion U-S dollars and 18 (b) billion U-S dollars to support Brazilian President Fernando Henrique Cardoso's austerity plan of tax increases and spending cuts.
The measures are aimed at saving 23.5 billion (b) U-S dollars so he can avert a devaluation of the country's currency, the real.
A devaluation could set off an economic melt down in Latin America and worsen turmoil in other world markets including the United States.
For months, Brazil has been one of the most closely watched patients on the emerging markets sick list.
After Asia's financial crisis last year and Russia's economic upheaval this summer triggered panic in global markets, international investors and bankers feared Brazil would be forced to devalue.
The country's foreign exchange reserves have dropped from 65 (b) billion U-S dollars to 47 billion (b) U-S dollars as investors moved out their money.
The Brazil package would be among largest put together by the 182-nation I-M-F.

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