Agência Brasil

Brasília - Brazil's foreign debt, according to the Central Bank's calculations for May, was down US$ 3.635 billion in comparison with March, ending up at a total of US$ 198.287 billion. This is the lowest level since December, 1997, according the head of the Economic Department of the BC, Altamir Lopes, who announced the bank's External Sector report for July, yesterday (18).

On the other side of the ledger from the net outflow of US$ 2.1 billion, to pay off foreign debt obligations, the estimated variation in the exchange rate in favor of Brazil's currency in the two-month period encompassing April and May reduced Brazil's foreign debt by US$ 1.6 billion. The biggest impact was on the country's medium and long-term debt, which dropped from US$ 181.462 billlion to US$ 177.266 billion, whereas the short-term debt grew from US$ 20.460 billlion to US$ 21.020 billion.

The Central Bank's report also shows that the country's international reserves dropped US$ 5.197 billion last month, mainly in consequence of the early payment of the country's US$ 4.976 billion debt to the International Monetary Fund (IMF). The reserves, which stood at US$ 59.886 billion in June, fell to US$ 54.688 billion in July.

Translation: David Silberstein