This case describes the events between October 1998 and early January 1999. To prevent a devaluation of the Brazilian real, the International Monetary Fund (IMF) provided a standby loan to Brazil. The case outlines the conditions under which the loan was granted and the effect of the loan on Brazil's balance of payments. In January 1999, Minister of Finance Cardoso faces two new challenges: getting congressional support for fiscal reform and a moratorium on debt payments declared by one of Brazil's states. See also the A case (UVA-BP-0429) and C case (UVA-BP-0431).