São Paulo - Minister of Development, Industry and Foreign Trade, Luiz Fernando Furlan, says he is certain that Brazil's risk premium will fall from the present 600 to around 400. The minister points out that a series of factors indicate a drop. The sum of exports and imports is near US$30 billion and the country has a cumulative 12-month cash flow surplus of around US$30 billion, as well. Both numbers show firm administrative control and robust commercial strength. Furlan says that the International Monetary Fund mission will take note of those factors. He explained that a drop in the risk primium is important as it will create room for further reductions in the country's basic interest rate. He added that the effects of the economic upturn during the first six months of the year will be felt, giving employment and income a boost.

Agência Brasil
Reporter: Marli Moreira
Translator: Allen Bennett
26/07/2004