Brazil To Settle $15.5 billion IMF Debt Early

Brazil has announced it will settle its $15.5 billion debt with the International Monetary Fund (IMF) before the end of this year – two years ahead of schedule. The government said the move will save Brazil around $900 million of interest payments. Brazil had been due to repay $7.03 billion of its debt next year and $8.43 billion in 2007. The sovereign borrowed heavily from the IMF following the devaluation of its currency in 1999. Strong economic fundamentals and trade and current account surpluses have allowed the government to make the move.