Brasília, November 5, 2003 (Agência Brasil - ABr) - By the end of 2006, the government will obtain US$ 1.2 billion foreign exchange savings through the repurchase of foreign debt instruments (Treasury bonds, notes, etc.). The repurchase program began in June, 2002. The news was passed along yesterday (8) by the president of the Central Bank (BC), Henrique Meirelles.

The amount is equivalent to the difference between what it costs to acquire the instruments and their face value plus the nominal value of interest payments.

According to Meirelles, since the start of the repurchase program, the BC has already reacquired Brazilian foreign debt instruments worth US$ 3.2 billion at face value. The repurchase does not imply cancellation of the instruments, which are issued by the Federal Treasury. But, on the expiration date, the country is spared the expense of redeeming repurchased instruments.

Meirelles also stated that repurchase operations so far this year have permitted a US$ 638 million reduction in debt payments. (DAS)