News Brief: Joint Communiqué of the Brazilian Authorities and the IMF Management

October 20, 1998

Joint Communiqué of the Brazilian Authorities and the IMF Management

Following the discussions held during the Annual Meetings, a Brazilian delegation arrived in Washington on Saturday, October 17, to assess with International Monetary Fund (IMF) staff and management the Brazilian fiscal situation, based on current policy assumptions.

The discussions were aimed at preparing the ground for prompt support by the international community, including the IMF, for the multi-year fiscal program soon to be announced by the Brazilian authorities, which will include new policy initiatives. Representatives from the World Bank and Inter-American Development Bank also attended these meetings.

Discussions were held on the medium-term path for the primary surpluses of the public sector, within a range of 2.5–3 percent of GDP as agreed between the Brazilian authorities and IMF management during the Annual Meetings.

IMF management agreed with the position of the Brazilian delegation that, within a framework of structural reforms, a 3-year fiscal program generating primary surpluses of 2.6 percent of GDP in 1999, 2.8 percent in 2000, and 3.0 percent in 2001, would fulfill the government target of stabilizing the ratio of net consolidated public sector debt to GDP by the year 2000.

Discussions are continuing with the objective of reaching early agreement on the detailed program mentioned in the Joint Statement of Understanding issued on October 8, 1998.


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