THE WHITE HOUSE

Office of the Press Secretary

FACT SHEET

International Support for Brazil

1. IMF -- The IMF assistance to Brazil totals approximately $18 billion. The structure of the package is in line with the enhanced IMF facility proposed by President Clinton last month and recently endorsed by the G-7. Of the $18 b. total, 70% will be provided through a Supplemental Reserve Facility at interest rates 300-500 basis points above normal IMF lending rates, and 30% will be provided via a 3-year stand-by arrangement.

|--------------------------------------+-------------------|

|                                      |                   |
| Total IMF contribution               | $18.0 billion     |
|                                      |                   |
|--------------------------------------+-------------------|
|                                      |                   |
| First disbursement amount            | $5.25 billion     |
| [After approval of Brazil's program  | SRF-$4.25 billion |
| by the IMF Executive Board]          | SBA-$0.75 billion |
|                                      |                   |
|--------------------------------------+-------------------|
|                                      |                   |
| Second disbursement amount           | $5.25 billion     |
| [Contingent on successful IMF review | SRF-$4.25 billion |
| by February, 1999]                   | SBA-$0.75 billion |
|                                      |                   |

|--------------------------------------+-------------------|

2. Multilateral Development Banks -- The World Bank and

     Inter-American Development Bank contributions will provide 
     assistance to Brazil to support improved social safety nets and 
     banking reform, among other things:

|----------------------------+--------------------+------------------|

|                            |                    |                  |
|                            |     World Bank     |  Inter-American  |
|                            |                    | Development Bank |
|                            |                    |                  |
|----------------------------+--------------------+------------------|
|                            |                    |                  |
| Total contribution         |       $4.5 billion |    $4.5 billion* |
|                            |                    |                  |
|----------------------------+--------------------+------------------|
|                            |                    |                  |
| Disbursed by end-1998      |     $1.375 billion |                  |
|                            |                    |                  |
|----------------------------+--------------------+------------------|
|                            |                    |                  |
| Disbursed by end-1999      |       $3.0 billion |   $3.7 billion** |
|                            |                    |                  |

|----------------------------+--------------------+------------------|

• includes $1.1 billion loan approved in Sept. 1998. ** includes $300 million of the $1.1 billion loan. 3. Bilateral financing -- Twenty countries will provide financing, in

  most cases to guarantee credits extended to Brazil by the Bank for International Settlements (BIS). The total amount is approximately $14.5 billion, of which the U.S. contribution will be $5 billion. We anticipate the following countries will offer bilateral support.

Austria
Belgium
Canada
Denmark
Finland
France
Germany
Greece
Ireland
Italy
Japan
Luxembourg
Netherlands
Norway
Portugal
Spain
Sweden
Switzerland
U.K.
U.S.

RR-2820

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