Brazil intends to clear its debts with the International Monetary Fund before the end of the year. According to the country?s finance ministry, "President Luiz Inacio Lula da Silva accepted a proposal by the finance minister and the president of the central bank to advance to the end of 2005 the payment of a total of 10.798 billion in special drawing rights (approximately $15.5 billion)." IMF Managing Director Rodrigo de Rato welcomed Brazil?s decision, which he said "reflects the growing strength of Brazil's external position, especially continuing substantial trade and current account surpluses and strong capital inflows that have greatly boosted reserves and reduced external debt." U.S. Treasury Secretary John Snow had a similar reaction. The pronouncement, Snow averred, "confirms Brazil's greatly improved external position and the benefits of its strong macroeconomic and debt management policies." (Sources: Brazil Fin Min: Govt To Pay $15.5 Bln IMF Debt By Yr-End; IMF Applauds Brazil Decision To Repay Early $15.5B Loans; US Snow Welcomes Brazil Decision To Prepay IMF Debt/Dow Jones Newswires)
