Brasília, March 23, 2004 (Agência Brasil) - The governing body of the International Monetary Fund (IMF) is expected, at its meeting on Friday (26), to approve the first review of the US$ 14.8 billion standing agreement signed with Brazil at the end of last year.

A green light will permit the country to withdraw a portion equivalent to US$ 1.4 billion, but the Minister of Finance, Antônio Palocci, has already declared that the Brazilian government does not intend to make use of the funds, unless there is a severe external crisis with consequences for the country.

In February, a technical team sent to Brazil by the Fund to review the agreement promised to recommend that the figures on the Brazilian economy and the government's efforts in fiscal policy be accepted.

The final decision, however, is up to the Council, which will discuss the matter in Washington (USA) on Friday.

In a note released in February, after the review of the agreement, the IMF anticipated that "all the performance criteria and structural parameters were fulfilled, and the Brazilian authorities remain committed to the maintenance of solid economic policies."

The agreement with the IMF foresees a primary surplus target of R$ 71.5 billion, which corresponds to 4.25% of the GDP (Gross Domestic Product), and 5.5% inflation in 2004, with a 2.5% tolerance limit, up or down.

Translation: David Silberstein