World Bank loans Brazil 757 million dollars
( 2001-06-06 10:03 ) (7 )

Show of force: A riot policeman holds up his stick whilst standing on parade during a show of force in the centre of Jakarta yesterday. Indonesia's defiant national police chief, who has refused a presidential order to step aside, skipped the parade of around 8,000 police officers and soldiers that was held to thank the men for their efforts during the last few weeks to keep law and order in the troubled capital. [Reuters]

The World Bank on Tuesday signed an agreement to loan Brazil 757.5 million dollars, aimed to boost the South American nation's foreign reserves.

The Brazilian government has been forced to intervene on numerous occasions recently to sell dollars, due to the downturn in the value of the real.

Economy Minister Pedro Malan said the agreement was not an emergency loan, since it was approved by the World Bank in January, well before the recent woes of the Brazilian currency made themselves felt.

"This is an important operation because it represents recognition from the Bank of the transformation in the fiscal regime by the Fernando Henrique Cardoso government recently," the minister added.

The money will become available from Wednesday, as a 12-year loan whose repayment date begins in 2006.