Brasília, 7/30/2003 (Agência Brasil- ABr) - The head of the International Monetary Fund mission now in Brazil, Jorge Márquez-Ruarte, met with the president of the Central Bank, Henrique Meirelles yesterday. Following the meeting, Marquez-Ruarte declared that Argentina is envious of Brazil because it has managed to achieve a primary surplus above the target set at the beginning of the year.

The primary surplus is the principal item in last year's IMF-Brazil agreement of US$30 billion. So far this year, Brazil has a primary surplus that is US$5.5 billion over the target. As part of the agreement, the country has the right to withdraw an additional US$4.2 billion this year.

Marquez-Ruarte said that inflation is converging on Central Bank targets (5.5% in 2004 and 4% in 2005, give or take 2.5 percentage points), and that he considers Brazilian inflation control "very efficient." (AB)