News Brief No. 99/2

News Brief: IMF’s Managing Director’s Statement on Brazil

January 13, 1999

The Managing Director of the International Monetary Fund (IMF), Michel Camdessus, today made the following statement:

"The Brazilian authorities have informed the IMF of the modifications of the exchange rate system adopted today. They have simultaneously reaffirmed to the IMF their strong determination to put in place, with the cooperation of the Congress and in the shortest possible time, the full fiscal adjustment program announced in November 1998.

"In view of the crucial importance of achieving a prompt stabilization in Brazil’s foreign exchange and financial markets, I welcome these assurances. I believe that no effort should be spared to ensure the rapid implementation of the Government’s fiscal adjustment, structural reform, and privatization program together with the pursuit of an appropriately strong monetary policy stance.

"We will be analyzing and discussing with the authorities in the coming days the implications of the new developments for the various components of the economic policy framework endorsed by the Executive Board," Camdessus said.