FROM THE OFFICE OF PUBLIC AFFAIRS

The Government of Brazil and IMF management today announced the completion of negotiations on IMF financial support for Brazil's economic program. In addition, the managements of the World Bank and Inter-American Development Bank announced that they will recommend that their institutions participate in this international effort as well. These actions are being taken in conjunction with the commitments of the Brazilian authorities to address their underlying fiscal imbalances.

Because of the importance we attach to a successful Brazilian program and to the contribution of that program to international financial stability, we have chosen to supplement the substantial resources that are expected to be made available by the international financial institutions to Brazil. In an effort to strengthen the international capacity to help countries ward off financial market contagion, our governments or central banks will support the provision of additional financing to Brazil, expected to total approximately $14.5 billion, alongside financing from the IMF. This financing is being arranged in collaboration with the Bank for International Settlements, in most cases through guarantees of BIS lending. We expect that these arrangements will be completed shortly and that the BIS will make a disbursement alongside the IMF's initial disbursement following approval of Brazil's program by the IMF Executive Board.

The financial community shares a common interest in the success of Brazil's program. So as to achieve this, the Brazilian authorities will be presenting their program to their domestic financial community and to the private international financial community over the course of the next few days.