Brasília, December 3, 2002 (Agência Brasil - ABr) - The presidential Chief of Staff, minister Pedro Parente, is awaiting a go-ahead from the Ministry of Finance to submit to the National Congress a bill concerning the Compensation Fund, created by the Federal government to reimburse exporter states for the losses caused by the Kandir Law, which alleviates the tax burden on goods for export. This information was provided today by the coordinator of the National Council of Secretaries of Finance (Confas), Arno Agustin, following a meeting with the administration's transition team. According to Agustin, two alternatives are being evaluated by the economic team: include in the 2003 General Budget around R$ 3.9 billion (US$ 1.09 billion) owed by the Federal government to the states, or include in the proposal an amendment indicating that reimbursement will be through a budgetary supplement next year.

The governors of exporter states demand that the future administration extend the Compensation Fund through 2006. The Fund is due to expire this December 31. (DAS)