Amadeusz Juskowiak

Funaro rejects uk suggestion of imf brazil plan

Brazilian Finance Minister Dilson Funaro flatly rejected a UK Suggestion that his country seek International Monetary Fund help in order to facilitate debt negotiations with commercial creditor banks

Talking to reporters Funaro said this attitude would not help resolve the crisis started when Brazil suspended indefenitely interest payments on 68 billion dlrs in external debt on February 20

Funaro was in Britain on the first leg of a tour of European capitals to explain the motives of the Brazilian debt moratorium and to seek support for intiatives to improve capital flows between developed countries and third world debtor nations

Talking before his departure for Paris he said there could be no question of Brazil adopting another IMF austerity plan after a similar package four years ago put Brazil in a very big recession

We had an IMF program it simply meant export more and import less We are not going to go the IMF he said

Funaro was reactnng to a British statement following his talks with Chancellor of the Exchequer Nigel Lawson saying the UK Government had no part to play in what it viewed as a problem between Brazil and its commercial creditor banks

Britain also believed an IMF program would help along negotiations between Brazil and the commercial banks the statement which banking sources interpreted as an outright rebuttal of all Brazilian demands said

That was not my impression of the meeting Funaro said But if the British answer is more or less like this then that means nothing is helping to find a solution

Funaro stressed that his talks in Washington last week and in Europe this week were aimed at gaining official support to unblock lending from official credit agencies rather than to deal with Brazils ties with commercial banks

Since 1982 all official agencies have been closed to my country he said

He said Lawson had made no commitments to support Brazils efforts Lawson would officially state his position when the two meet again next month for the IMF and World Bank spring meetings in Washington Funaro said

Stressing there was no binding time schedule for Brazils debt problem to be resolved Funaro said Brazil had not come to Europe with specific proposals to overcome the present crisis

We didnt come here to make a cashflow programme he said We will have meetings at the IMF next month lets see what happens

Neither did Brazil plan a major overhaul of current domestic economic policies which Funaro said would likely lead to a five pct economic growth this year

Over the past five years we paid back 45 billion dlrs and received 11 billion This is a very big effort he said What we have to offer is our cooperation

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