Brazil seeks to end IMF agreements with a soft landing in the future

05/11/2003 - 21h15

Brasília, 11/6/2003 (Agência Brasil - ABr) - Following a four-hour meeting with the second managing director of the International Monetary Fund, Anne Krueger, minister of Finance, Antônio Palocci, announced that in the future Brazil intends to leave the fund, but not abruptly.

Palocci said Brazil wants a soft landing after concluding business with the IMF. "The objective of the government is to extend the present agreement and then, in the future, leave the IMF and not make further agreements with it," he declared.

According to Palocci, both sides have advantages knowing the relationship is heading toward a termination. "It is just not a good thing for countries to stay in IMF programs for an unlimited period of time. It is not good for the IMF. It is not good for the country," said the minister.

As for Krueger, she said that all the IMF wants is "for Brazil to decide what it wants so we can help." She added that the agreement still has to be approved by the IMF board. (AB)