Mark Connally

3.

After cutting ties with the IMF in 1983, after a 6 billion-dollar loan, Brazil now seeks to confront and work with the IMF. Brazil has a plan of using the IMF as a consultant, and with this plans to impose an economic policy within three weeks.

Brazil has boycotted the IMF for nearly three years, and now plans to negotiate borrowing arrangements. Mr. Nobrega, the finance minister, believes this will stable Brazils troubling situation. As Brazil is already the world’s largest debtor, they could receive a loan of up to 6 billion dollars if it reduces it 17% interest rate and to do this they must cut subsidies (which might be a problem). Brazil, in 1988, owed up to 100 billion dollars to the IMF. One of the reasons for the stand off between the IMF and Brazil is because Brazil had accused the IMF of trying to interfere with domestic affairs, while their economic situation steadily worsened.