Brazil agrees steps to cut deficit
BRAZIL AGREED to new steps to narrow the budget deficit and muffle inflation to ensure that $41.5bn in aid arranged by the International Monetary Fund keeps flowing. Three days of 12-hour-a-day negotiations involving the IMF and Brazil's top officials yielded an inflation target of below 10 per cent, agreement to use interest rates as the main tool to keep a lid on prices and setting fixed terms for the central bank chief.
The new spending cuts would narrow a projected 73 billion real deficit by as much as 9 billion reals (pounds 3.1bn), increasing the budget surplus before interest payments to up to 3.5 per cent of gross domestic product from 2.6 per cent.
Subscribe to Independent Premium to bookmark this article
Want to bookmark your favourite articles and stories to read or reference later? Start your Independent Premium subscription today.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies