Brazil to Pass on IMF Money

  The Associated Press
The Washington Post, April 17, 2002


Brasilia, Brazil Brazil's economy is doing so well that the government will pass up a $4.6 billion loan from the International Monetary Fund and will return $4.65 billion it borrowed last year.

Last September, Brazil got an emergency standby loan of $15.2 billion from the IMF and withdrew about $4.65 billion. Now the government says it will pay back the money, even though it is entitled to withdraw more.

The Finance Ministry said in a communique that Brazil doesn't need the money because it has raised enough in foreign capital markets.

Brazil got $3.1 billion from private creditors last year, while foreign direct investment totaled a healthy $9 billion between October and February, the government news agency Radiobras said.

Latin America's largest country has been an island of calm on a continent wracked by recession, unrest and civil war. A domestic energy crisis hurt Brazil last year but the economy is expected to grow 2.5 percent in 2002.


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