Brazil moves to avert crisis
Monday 05 October 1998
Brazil is on the front line of world financial turmoil, potentially the next to be swamped by massive capital outflows.
Pedro Malan, finance minister, said yesterday that $20bn would cover the remaining third of Brazil's capital requirements not met by expected direct investment flows over the next year. The country is negotiating a package with the International Monetary Fund and other multilateral institutions, but despite days of talks there is no deal yet. However, "there will be news of forward movement...in the next few days," he said.
Mr Malan said there was no justification for the assault launched on Brazil by banks and investors following the crises in Asia and Russia. Brazil's economy was on a much healthier course, he said, blaming "trigger happy, shooting-from-the- hip analysts" for ignoring the real economy and "unduly penalising" the country.
"We don't have the same major economic and political problems of other countries," Mr Malan said.
Despite rumours to the contrary, Brazil would not deviate from its present economic policies. "We are not going to change our exchange rate regime," he said, but rather the country would maintain its sliding range against the US dollar, which allows for a de facto real depreciation of 6 per cent a year. Nor would it clamp down on rapid flows of short-term money.
- 1 Isis 'jihadi bride' claims forced sex with Yazidi girls is never rape because Koran condones it
- 2 Eurovision 2015 winner: Sweden beats Russia and Italy to take the title from Conchita Wurst
- 3 Purity balls: Girls in the US making virginity pledges as fathers vow to 'protect purity'
- 4 Mother 'will allow son's circumcision in return for release from prison'
- 5 Female Muay Thai champion hustles coaches to give them a beating
Isis 'jihadi bride' claims forced sex with Yazidi girls is never rape because Koran condones it
Greek hospitals cannot afford painkillers, scissors or sheets as budget cuts bite
Purity balls: Girls in the US making virginity pledges as fathers vow to 'protect purity'
Female Muay Thai champion hustles coaches to give them a beating
Puerto Rico, island of lost dreams: People are leaving the debt-hit territory in droves as near neighbour Cuba's star rises
As a white man, I'm surprised more women aren't tweeting the hashtag #KillAllWhiteMen
Scotland may have to leave the EU even if it votes to stay in, David Cameron confirms
Report finds that Britain's wages are the most unequal in Europe
The day that Britain resigned as a global power
Almost a third of school pupils believe 'Muslims are taking over our country', study claims
Gay marriage 'Bert and Ernie' cake bakery found guilty of discrimination in Northern Ireland
iJobs Money & Business
£40-50K: Guru Careers: We are seeking an experienced Software / C# Developer w...
£45,000 - £55,000: Neil Pavier: Are you looking for your next opportunity for ...
£45,000 - £55,000: Sheridan Maine: Are you a newly qualified ACA/ACCA/ACMA qua...
£50,000 - £60,000: Laura Norton: Are you looking for an opportunity within a w...