Brasília, September 18, 2003 (Agência Brasil - ABr) - The Minister of Planning, Budget, and Management, Guido Mantega, informed today that foreign direct investments amounted to US$ 1.2 billion in August, confirming a restoration of confidence in Brazil. "By the end of the year, we can reach US$ 10 billion," the Minister speculated, at a public hearing before the Joint Committee on Plans, Government Budgets, and Control.

Mantega also pointed out that the total of foreign direct investments in July was US$ 1.4 billion. He commented, as well, the success of the trade balance, which attained a surplus of US$ 22.9 billion over the past 12 months, "the best performance ever in the country's trade surplus." With respect to the surplus in current transactions, the Minister underscored that, through July, the surplus stood at US$ 2.2 billion, but he emphasized that, by the end of the year, the results will fall into the red.

Measures adopted over the past eight months, according to Mantega, permitted a reduction in the Public Debt/Gross Domestic Product (GDP) ratio from 62.5% in October, 2002, to 57% in July. "This is not an ideal level, nor will it solve the debt problem, but it indicates a downward trend," he said, informing that, thanks to this ratio, the government kept the primary surplus target of 4.25% of the GDP in the budget for 2004. (DAS)