Brazilian government officials said yesterday they have completed negotiations with the International Monetary Fund on a new loan package aimed at permitting the nation to keep up payments on its $90 billion in foreign debt, Brazil's Finance Minister said today.
"This completes the whole package of negotiations for Brazil," said Ernane Galveas, Brazil's finance minister, after a meeting with an international banking advisory committee. "There is no disagreement at all," he said.
Galveas said he hopes Brazil can finish a letter of intent to the IMF outlining its national economic position by Thursday. Brazil is now more than $1.5 billion behind in payments on its foreign loans.
In addition, Galveas announced that Brazil has concluded negotiations with the World Bank on a $650 million financing project. The two part World Bank program includes a $350 million loan for a Brazilian industrial project and a $300 million program to encourage agricultural exports from the Northeast part of Brazil.
Galveas said the IMF agreement is based on the likelihood that Brazil would show an inflation rate of about 160 percent for 1983, about 30 percent higher than projections included in an earlier agreement Brazil signed with the IMF in February.
Galveas said he hoped Brazil could hold its inflation rate to 90 percent next year and that by December 1984 the inflation figure could fall to between 55 and 60 percent.
Carlos Geraldo Langoni, the former president of Brazil's central bank, resigned earlier this month because he could not reach agreement on a new IMF loan package which called on Brazil to reduce inflation to 55 percent. At the time, Langoni had endorsed a 1984 inflation figure of between 70 and 80 percent.
The figures are particularly important because the inflationary pressures in Brazil have been a major factor in the economic difficulties the country faces.