Brazil says it will repay its entire $15.5 billion debt to the International Monetary Fund early, a move lauded by IMF officials.

In Sao Paulo Tuesday, Finance Minister Antonio Palocci said the payment will come from the country's reserves and be paid before the end of the year. He said it will save the South American country more than $900 million in interest costs.

IMF Managing Director Rodrigo Rato said the move reflects the excellent track record of policy management by Brasilia. He said the early payment also indicates the growing strength of Brazil's economy, especially in improving trade and current account surpluses as well as strong inflows of capital into the country.

The early repayment represents an economic turnaround for Brazil, which in 2002 obtained an unprecedented loan from the IMF to avoid a massive default on its debt. Brazil is South America's largest economy.