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IMF to Discuss Bailout Loan for Brazil - 2002-08-29

The International Monetary Fund has confirmed it will discuss its proposed $30 billion bailout for Brazil on September 6.

IMF spokesman Tom Dawson says the new loan will be approved without any problems.

Earlier this month, the IMF said it would support Brazil in an effort to shore up an economy that has been battered by investor anxiety ahead of October presidential elections.

Investors have been concerned over the wide leads held by two left-leaning candidates in the polls.

Some investors fear that Luiz Inacio Lula da Silva and Ciro Gomes, may try to declare a moratorium on the country's massive debt of nearly $300 billion.

However, the latest polls show the ruling party candidate, Jose Serra, making some significant gains against Mr. Gomes.

Mr. Serra is the darling of investors because he has promised to continue the government's economic stabilization policies.