Press Release No. 05/164

Press Release: IMF Welcomes Brazil's Intention to Make an Early Repayment of its Outstanding Supplemental Reserve Facility Obligations to the IMF

July 14, 2005

On July 13, 2005, the Brazilian authorities announced their intention to repay early the outstanding Supplemental Reserve Facility (SRF) obligations to the International Monetary Fund (IMF) amounting to SDR 3.42 billion (about US$5 billion). The outstanding SRF obligations of Brazil had all been contracted under the Stand-By Arrangement that was approved by the Executive Board on September 6, 2002 and extended on December 12, 2003 (see Press Releases No. 02/40 and No. 03/217).

Mr. Rodrigo de Rato, the Managing Director of the IMF, welcomed this announcement and commended the Brazilian authorities for their economic achievements over the last few years. He noted that "Brazil's ability to repay the SRF obligations ahead of schedule reflects the strong macroeconomic and institutional framework in place and a balance of payments position that is much stronger than previously anticipated, in large part reflecting an impressive export performance. Sound economic policies and reforms have significantly lessened economic vulnerabilities and bolstered confidence in the economy."

Total drawings under the recently completed Stand-By Arrangement were equivalent to SDR 17.20 billion (about US$25.08 billion), out of a total of SDR 27.38 billion (about US$39.92 billion) that were made available. SDR 7.61 billion (about US$11.10 billion) of the drawings were under the SRF, of which SDR 4.19 billion (about US$6.11 billion) have already been repaid. Under the original schedule, the final repayment of outstanding SRF obligations would have taken place in March 2006. Following the early repayment of SRF obligations, Brazil's outstanding loans from the IMF will be SDR 10.79 billion (about US$15.73 billion).