The Government believes that these policies will promote sustainable and equitable long term growth of output and employment in conditions of low inflation and external viability, particularly in the context of volatile international financial markets. It will also improve efficiency throughout the economy in general and in the public sector in particular and address priority social needs. The Government stands ready to take additional policy measures if needed to ensure the advancement of these objectives. The Brazil-IMF program follows intensified dialogue since early October. The IMF has already expressed support in two previous joint communiqu s for the Brazilian three year fiscal program.
Brazil sees the program with the fund as having essentially a preventive nature.
It will assist the country to face a period of deep uncertainty in the international financial markets. During the period of the arrangement, the authorities of Brazil will maintain close relations with the Fund, and will consult on the adoption of policy measures that may bc needed, in accordance with existing practices.