Brasília, July 29, 2003 (Agência Brasil - ABr) - The head of the International Monetary Fund (IMF) mission, Jorge Marquez-Ruarte, said, yesterday (28), that the fourth review of the US$ 30 billion agreement will take place "with tranquility," but he did not disclose whether he will recommend the liberation of the US$ 4.2 billion to which the country is entitled in case the review is approved.
This is the second-to-last review of the loan, which was signed last year and ends in December; Brazil has already received US$ 19 billion.
At the end of the mission's first working day, marked by trips back and forth between the Ministry of Finance and the Central Bank, Ruarte said he was satisfied with all he heard from Minister Antônio Palocci and the economic team's experts, especially about the progress of the social security and tax reforms. "We discussed economic policy and the government's plans to consolidate sustainable growth," he commented.
The IMF representative said that the government will know how to adopt economic policies capable of attracting back Foreign Direct Investment, which fell 63.5% in the first half of the year, in comparison with the same period last year, without making a new loan necessary. "The agreement with the Fjund is not necessary for this; what is important is the government's policy. If the government continues to demonstrate adequate policies to consolidate the financial situation, it will be in very good shape," he said, adding that the institution will continue supporting Brazil, with or without a new agreement.
"The world outlook continues to be very favorable for Brazil," Ruarte commented, underlining the recovery of confidence in Brazil, expressed by the fall in Brazil's country risk premium from 2,400 to 700 points in a matter of a few months. "This is a record in the country's history," he stated.
As for economic growth in 2003, for which the current projection of between 1.5% and 2% is inferior to the 2.8% foreseen in the agreement with the Fund, the head of the mission should that it should grow in the future, but he refrained from making forecasts. (DAS)
