São Paulo, 8/29/2003 (Agência Brasil - ABr) - The director of the Brazilian Center at Columbia University, Albert Fishlow, says that Brazil should renew its agreement with the International Monetary Fund, but under more flexible conditions that would give the country more freedom to decide where to spend money. Fishlow said it is still to early to renounce the IMF link because renewed growth is not strong yet. "I think it would be a mistake not to renew the agreement with the IMF," he said.

Fishlow said Brazil still has a chance to grow in the last quarter of this year, adding that such growth could be based on increased investments due to the greater credibility the country now has and the recent reduction in interest rates.

"I see an improvement in the situation in Brazil. With regard to macro-economics, there is no doubt that minister Palocci has reverted the pessimistic expectations that existed not only here in Brazil but abroad as well," said Fishlow.

Fishlow said he believes there will be an increase in foreign investments next year, stronger domestic demand, a further reduction in interest rates and, above all, more exports. He added that sustainable growth will require greater levels of domestic savings, pointing out that savings in Brazil at the moment are at the same level they were in the 1950s. (AB)