Brazil Uses Foreign Reserves to Pay IMF US$ 5 Billion in Advance

    Brazil’s Central Bank (BC) has announced that it will anticipate a payment of part of its debt to the International Monetary Fund which totals US$ 20.75 billion.

    The payment will be US$ 5.12 billion of a so-called IMF Supplemental Reserve Facility loan, which includes principal and interest.


    The payment will be made on July 25. The loan was scheduled to be paid off in four installments with the final installment only in March of next year.


    According to the BC, the decision to anticipate the payment was made because of the type of loan – it is a short-term loan with high costs.


    The BC added that Brazil’s presently favorable situation with regard to its balance of payments was another reason to make the payment now.


    The money for the payment will come from Brazil international reserves. The BC now estimates that at the end of this year Brazil will have US$ 56.6 billion in reserves.


    ABr – www.radiobras.gov.br

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