Rio, November 4, 2003 (Agência Brasil - ABr) - The head of the IMF mission, Jorge Márquez-Ruarte, said that he is optimistic about Brazil's economic situation. "Inflation is under control and is under control as well for 2004. This is clear, and it is why the Central Bank is lowering interest rates," he affirmed.

Márquez-Ruarte considers it reasonable for the year to close with inflation running around 9.5%, as the market expects. For next year, he regards it possible for the government's target of 5.5% to be achieved. "All expectations indicate that it will be around this."

He informed that Brazil fulfilled all the conditions set for the fifth review of the loan program and that the reduction in the indicators, which were negative last year, is a sign that there is confidence in the government and economic policy. For Ruarte, this is the best incentive for growth. "Brazil is in a good position, because it took very good steps. It is important that it continue to take them, and this is what the Fund will support," he added.

The head of the mission also said that the Fund will also support the surplus targets, as well as the federal government's social agenda. (DAS)