In a message dated 8/19/99 8:34:57 PM Central Daylight Time, AOL News writes: << Subj: Brazil's Bank Will Not Use IMF Aid Date: 8/19/99 8:34:57 PM Central Daylight Time From: AOL News BCC: Ahab42 Brazil's Bank Will Not Use IMF Aid .c The Associated Press RIO DE JANEIRO, Brazil (AP) - In an show of confidence with Brazil's currency weakening, the central bank said Thursday that it will not draw on the third part of a $41.5 billion aid package put together by the International Monetary Fund. The central bank said it will waive the right to the $4.35 billion tranche, despite the the real sliding to its weakest point in over five months. The currency closed at 1.94 to the dollar on Thursday, compared to 1.91 on Wednesday. The bank's international affairs director Daniel Gleizer said he was confident the real would soon regain strength after a shaky period this week. ``Any moment now, (the market) will realize the economy is growing more than expected, inflation is low, and we are meeting all our fiscal targets,'' he told reporters. The bank will give priority to repaying the $19.2 billion already loaned to Brazil by the IMF and other lenders before drawing more, Gleizer said. The latest tranche wasn't needed as the capital flow into Brazil remains positive. The loan was put together last year to support Brazil's economy as it was rocked by financial instability. Markets have recovered significantly in recent months, triggered by positive economic signs, but they have been knocked by uncertainty this week. On Wednesday, the central bank acted to combat a slide in the real by suspending a 0.5 percent tax on some forms of foreign capital coming into Brazil. It also intervened on the currency market for the first time since May, selling dollars to strengthen the real. In the weeks after after the government devalued the real in mid-January, the real plunged to a low of 2.20 to the dollar. Prior to that, it was worth around 1.20 to the dollar. AP-NY-08-19-99 2134EDT Copyright 1999 The Associated Press. The information contained in the AP news report may not be published, broadcast, rewritten or otherwise distributed without prior written authority of The Associated Press. Announcement: America Online has added Reuters newswires to News Profiles. To add Reuters articles to your daily news delivery, go to KW: <A HREF="aol://5862:146">News Profiles</A> and click on "Modify Your News Profiles." Then click "Edit" and add Reuters from the list on the left. To edit your profile, go to keyword <A HREF="aol://1722:NewsProfiles">NewsProfiles</A>. For all of today's news, go to keyword <A HREF="aol://1722:News">News</A>. >>
Brazil's Bank Will Not Use IMF Aid .c The Associated Press RIO DE JANEIRO, Brazil (AP) - In an show of confidence with Brazil's currency weakening, the central bank said Thursday that it will not draw on the third part of a $41.5 billion aid package put together by the International Monetary Fund. The central bank said it will waive the right to the $4.35 billion tranche, despite the the real sliding to its weakest point in over five months. The currency closed at 1.94 to the dollar on Thursday, compared to 1.91 on Wednesday. The bank's international affairs director Daniel Gleizer said he was confident the real would soon regain strength after a shaky period this week. ``Any moment now, (the market) will realize the economy is growing more than expected, inflation is low, and we are meeting all our fiscal targets,'' he told reporters. The bank will give priority to repaying the $19.2 billion already loaned to Brazil by the IMF and other lenders before drawing more, Gleizer said. The latest tranche wasn't needed as the capital flow into Brazil remains positive. The loan was put together last year to support Brazil's economy as it was rocked by financial instability. Markets have recovered significantly in recent months, triggered by positive economic signs, but they have been knocked by uncertainty this week. On Wednesday, the central bank acted to combat a slide in the real by suspending a 0.5 percent tax on some forms of foreign capital coming into Brazil. It also intervened on the currency market for the first time since May, selling dollars to strengthen the real. In the weeks after after the government devalued the real in mid-January, the real plunged to a low of 2.20 to the dollar. Prior to that, it was worth around 1.20 to the dollar. AP-NY-08-19-99 2134EDT Copyright 1999 The Associated Press. The information contained in the AP news report may not be published, broadcast, rewritten or otherwise distributed without prior written authority of The Associated Press. Announcement: America Online has added Reuters newswires to News Profiles. To add Reuters articles to your daily news delivery, go to KW: <A HREF="aol://5862:146">News Profiles</A> and click on "Modify Your News Profiles." Then click "Edit" and add Reuters from the list on the left. To edit your profile, go to keyword <A HREF="aol://1722:NewsProfiles">NewsProfiles</A>. For all of today's news, go to keyword <A HREF="aol://1722:News">News</A>.
