Reflecting the countries' continuing strong fundamentals, Brazilian authorities announced the prepayment of outstanding obligations to the IMF. The government intends to repay early the outstanding Supplemental Reserve Facility (SRF) obligations to the Fund amounting to around $5 billion.
Brazil recently completed an IMF stand-by agreement and has not taken up fresh IMF loans since. Following the early repayment, the country's outstanding IMF obligations now amount to $ 15.73 billion. Under the original schedule, the final repayment of outstanding obligations would have taken place in March 2006.
The IMF's managing director Rodrigo de Rato said: "Brazil's ability to repay ahead of schedule reflects the strong macroeconomic and institutional framework in place and an impressive export performance. Sound economic policies and reforms have lessened economic vulnerabilities and bolstered confidence in the economy."
Brazil's government remains embroiled in a corruption scandal involving top level officials. Today, the governing Worker's Party former treasury Delubio Soares admitted to acting illegally while financing the election campaign.
As yet, the scandal has not seriously damaged president Lula, who's ratings of public support remain high.