BRAZIL PLANS NEW ECONOMIC STRATEGY FOR GROWTH
Brazil is preparing a new economic
strategy intended to protect domestic growth, Finance Ministry
sources said.
    A presidential spokesman said President Jose Sarney had
authorised the government's economic team to prepare the new
plan as soon as possible.
    Finance Minister Dilson Funaro said last night the plan
would reflect "an important battle to protect the country's
development and keep it from recession."
    Funaro, who helped lead the anti-inflation Cruzado Plan
launched in February 1986, has come under increasing attack
over the past few days following the resignation of Planning
Minister Joao Sayad on March 17. Observers say the plan has
failed to stabilise the country's economy.
    Sayad submitted a new package calling for a 90-day prices
and a wage freeze, but met opposition from Sarney and Funaro.
    Foreign Ministry sources said the new strategy was being
prepared by economists Persio Arida and Andre Lara Resende,
both former Central Bank officials said to have played leading
roles in the Cruzado Plan.
   The new plan will define the terms on which Brazil will seek
rescheduling of its 109 billion dlr foreign debt.
    On February 20, Brazil suspended servicing of 70 billion
dlrs of debt to private foreign banks.
    Funaro said last night Brazil wants a rescheduling program
spread over four years, and added that it had to include new
loans to keep the domestic economy growing.
    "In the past two years Brazil paid 24 billion dlrs in
servicing of its foreign debt, while only getting two billion
dlrs in new loans," Funaro said.
  REUTER
