Product Overview

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).

Learning Objectives

This case allows for a discussion of the role of the IMF in helping countries in crisis and in promoting the stability of the international financial system, and for a detailed analysis of Brazil's balance of payments. This case series can be used in classes on international economics, international business, or international financial markets.