THE
WHITE HOUSE
Office
of the Press Secretary
________________________________________________________________________
For Immediate Release
November
13, 1998
FACT
SHEET
International
Support for Brazil
1. IMF -- The IMF assistance to Brazil totals approximately $18
billion. The structure of the package is in line with the
enhanced IMF facility proposed by President Clinton last month
and
recently endorsed by the G-7. Of the $18 b. total, 70% will
be
provided through a Supplemental Reserve Facility at interest
rates
300-500 basis points above normal IMF lending rates, and 30% will
be provided via a 3-year stand-by arrangement.
|--------------------------------------+-------------------|
|
|
|
| Total IMF contribution
|
$18.0 billion |
|
|
|
|--------------------------------------+-------------------|
|
|
|
| First disbursement amount
| $5.25 billion
|
| [After approval of Brazil's program | SRF-$4.25 billion |
| by the IMF Executive Board] |
SBA-$0.75 billion |
|
|
|
|--------------------------------------+-------------------|
|
|
|
| Second disbursement amount |
$5.25 billion |
| [Contingent on successful IMF review | SRF-$4.25 billion |
| by February, 1999]
|
SBA-$0.75 billion |
|
|
|
|--------------------------------------+-------------------|
2. Multilateral Development Banks -- The World Bank and
Inter-American Development Bank contributions will provide
assistance to Brazil to support improved social safety nets and
banking reform, among other things:
|----------------------------+--------------------+------------------|
|
|
|
|
|
|
World Bank | Inter-American |
|
|
|
Development Bank |
|
|
|
|
|----------------------------+--------------------+------------------|
|
|
|
|
| Total contribution |
$4.5 billion | $4.5 billion* |
|
|
|
|
|----------------------------+--------------------+------------------|
|
|
|
|
| Disbursed by end-1998 | $1.375
billion |
|
|
|
|
|
|----------------------------+--------------------+------------------|
|
|
|
|
| Disbursed by end-1999 |
$3.0 billion | $3.7 billion** |
|
|
|
|
|----------------------------+--------------------+------------------|
* includes $1.1 billion loan approved in Sept. 1998.
** includes $300 million of the $1.1 billion loan.
3. Bilateral financing -- Twenty countries will provide financing, in
most cases to guarantee credits extended to Brazil by the Bank
for
International Settlements (BIS). The total amount is
approximately
$14.5 billion, of which the U.S. contribution will be $5 billion.
We anticipate the following countries will offer bilateral
support.
Austria
Belgium
Canada
Denmark
Finland
France
Germany
Greece
Ireland
Italy
Japan
Luxembourg
Netherlands
Norway
Portugal
Spain
Sweden
Switzerland
U.K.
U.S.