FROM THE OFFICE OF PUBLIC AFFAIRS

We welcome today's important agreement between Brazil and the International Monetary Fund on a strengthened economic program. Brazil intends to exceed both the fiscal and debt reduction targets agreed with the Fund last year, and has taken important steps since then to meet its objectives. We believe that firm and sustained implementation of this program can preserve financial stability, safeguard the significant results achieved under the Real Plan, and lay a solid basis for restored confidence and renewed growth.

Brazil is in the process of discussing with private international financial institutions voluntary arrangements to help secure support for the program by the private sector. Substantial participation by Brazil's private sector creditors is important to Brazil's economic program. In this context, we are prepared to join with the IMF and other countries to make available substantial additional financing from the international support program arranged last year.

Brazil's success in preserving stability and laying the foundation for growth is of critical importance to the United States, other regional economies and the international community.