Press Release: Brazil Announces Intention to Complete Early Repayment of Entire Outstanding Obligations to the IMF

IMF News, December 13, 2005

Source details

Canonical URL: Press Release: Brazil Announces Intention to Complete Early Repayment of Entire Outstanding Obligations to the IMF

On December 13, 2005, Brazil announced its intention to make an early repayment of its entire outstanding obligations to the International Monetary Fund (IMF) amounting to SDR 10.79 billion (about US$15.46 billion).
These outstanding obligations had been contracted under the Stand-By Arrangement that was approved by the Executive Board on September 6, 2002 and extended and augmented on December 12, 2003.

Outstanding repayment announced: SDR 10.79 billion (about US$15.46 billion).
Total drawings by Brazil under the Stand-By Arrangement: SDR 17.20 billion (about US$24.65 billion).
Total made available under the Stand-By Arrangement: SDR 27.4 billion (about US$39.23 billion).
Supplemental Reserve Facility (SRF) early repayment on July 22, 2005: SDR 3.42 billion (about US$4.91 billion).
Under the original schedule, the final repayment would have taken place in 2007.
Executive Board meeting to consider Brazil's performance since the end of its program: December 7, 2005.
Next Article IV consultation expected to take place in March 2006.

Mr. Rodrigo de Rato, the Managing Director of the IMF, said: "I very much welcome Brazil's decision to repay its outstanding obligations to the Fund. This decision reflects the growing strength of Brazil's external position, especially continuing substantial trade and current account surpluses and strong capital inflows that have greatly boosted reserves and reduced external debt. More fundamentally, the excellent track-record of policy management by the Brazilian authorities has provided the basis for the consolidation of market confidence, the sustained improvement of macroeconomic performance, and an improvement in the profile of domestic as well as external debt."
Mr. de Rato added: "The Fund looks forward to continuing a close and constructive relationship with the Brazilian authorities, including in key areas such as public investment."

Stand-By Arrangement approved by the Executive Board on September 6, 2002.
Stand-By Arrangement extended and augmented on December 12, 2003.
SRF obligations repaid early by Brazil on July 22, 2005: SDR 3.42 billion (about US$4.91 billion).
Executive Board reviewed Brazil's post-program performance on December 7, 2005; a summary of that discussion will be issued shortly.

Press Release No. 05/275 — December 13, 2005. International Monetary Fund.