FROM THE OFFICE OF PUBLIC AFFAIRS

We welcome today's agreement between the International Monetary Fund and Brazil and the announcement of support by the managements of the World Bank and Inter-American Development Bank. Brazil's economic program -- fully implemented and with international support -- provides a solid basis for restored confidence and renewed growth.

Today the United States and nineteen other countries announced a program of bilateral support to augment resources from the IMF and the multilateral development banks. Bilateral lenders will be prepared to provide approximately $14.5 billion in short-term financing for Brazil, in most cases through guarantees of lending by the Bank for International Settlements. The United States' portion of this support will be to guarantee, through the Exchange Stabilization Fund, up to $5 billion. We anticipate that the first disbursement of the bilateral support will take place once Brazil's program is approved by the IMF Executive Board and will be alongside the first IMF disbursement.

The structure of the financial assistance that will be available to Brazil is in line with the enhanced IMF facility now under development that was proposed by President Clinton last month and was recently endorsed by the Group of Seven.

Our decision to provide bilateral support reflects our commitment to strengthen the international financial system, guard against financial market contagion, and protect America's economic interests. The success of Brazil's program is very important to the United States and the international community.