Brazil Meets Key IMF Fiscal Target for 1999

Brazil announced that it met its main IMF-agreed fiscal target for 1999 by posting a primary budget surplus of 3.13% of gross domestic product, just above the 3.10% stipulated. “We reached the primary surplus target with almost $1 billion to spare,” said Altamir Lopes, director of the Central Bank’s economic department. “I have no doubt we will meet [this] year’s target as well.” Brazil was required to meet the primary surplus target, which excludes debt servicing, as part of a fiscal austerity drive agreed to with the IMF in exchange for a $41.5-billion loan package. Last week, the central bank said Brazil also met all monetary and foreign debt goals for 1999, as outlined by the IMF.