SAO PAULO, Aug. 20 (UPI) -- Brazil's central banker and minister of finance will have more on their minds than securing additional lines of credit for their country's sagging economy when they visit New York next week.
Leading up to the meeting with Wall Street executives and senior Federal Reserve officials, Central Bank President Arminio Fraga said earlier this week it was "a good time to do business in Brazil," adding he and minister Pedro Malan will attempt to promote Brazil to a group of banks -- including J.P. Morgan and Citibank --with significant stakes in South America's largest country and economy.
Fraga said he intends to meet with investors to postpone paying off its debts. The central banker also said he would meet with companies that have expressed interest in increasing their exposure in Brazil.
Brazil's economic team is also expected to go over aspects of the country's payments on international debts and the recent agreement with the International Monetary Fund.
The meeting -- scheduled for Aug. 26 at the Federal Reserve of New York -- was supposed to take place this week. Turbulence in both Brazilian and U.S. markets, however, prompted the decision to postpone the meeting, according to Fraga.
Credit has been tight for Brazilian businesses recently, as foreign investors fret over the dominance of two left-leaning candidates in the four-man race for the presidency.
Elections are scheduled for Oct. 6. If no candidate wins a majority of the vote (more than 50 percent) then a runoff between the top two -- scheduled for Oct. 27 -- will determine the winner.
Currently leading in the polls are Workers' Party candidate Luiz Inacio Lula da Silva and Popular Socialist Party front man Ciro Gomes.
Both have been vocal critics of President Fernando Henrique Cardoso's fiscal policy and the recent $30 billion IMF bailout.
Investors are concerned that either Lula (as he is commonly known) or Gomes might default on the $250 billion debt Brazil has with foreign lenders if elected.
Both candidates have assured they would not default on the loans, though speculated that some restructuring might be in order.
The $30 billion allotted by the IMF was meant to assist Brazil in staving off a budget crisis.
Earlier in the week, Fraga announced that $2 billion form the central bank would go to Brazilian firms to help them but foreign goods necessary to maintain their output.
Following Monday's meetings between each of the candidates and Cardoso, the president said recent measures to boost exports and successful international agreements showed the world that Brazil was under firm control and has adequate policies in place to ensure economic growth.
"Anyone who does not understand this is going to lose out on an opportunity to participate in Brazilian development," Cardoso said.
