São Paulo, July 28, 2003 (Agência Brasil - ABr) - An extension of the agreement with the IMF (International Monetary Fund) will be analyzed in September, according to the Minister of Planning, Guido Mantega, for whom discussion of the matter is still premature. He recalled that an IMF mission is in Brazil to verify compliance with the targets set through June, and that the Fund will make the next-to-last installment of the loan, whose total worth amounts to US$ 31 billion, available to Brazil in the middle of August. "We are not very concerned about this. I think that the country's external situation is very good. Credibility has been restored, and there are no risks on the horizon, so in light of this situation, there is no need to renew the loan, but it is better for us to leave this matter for September," he said.

According to Mantega, the mission will analyze whether the government is complying with the conditions determined in the agreement and will discover a situation that is "very good," including compliance with the primary surplus, fiscal balance, and inflation under control. "Each time they come, they encounter a situation that gets better and better," he added. (DAS)