FROM EXTERNAL STRANGULATION TO MORATORIUM: THE BRAZILIAN NEGOTIATION WITH IMF IN FIGUEIREDO'S ADMINISTRATION (1979-1985)

ABSTRACT

External indebtedness process adopted in the 1970s was directly associated with borrowing of the II PND. The need for legitimacy of discretionary regime compelled the government to enter the Brazilian economy recklessly in the international financial system. After the second oil shock in 1979, the economic policy of technocracy came down to manage the balance of payments crisis. It was established, then, a long and hesitant negotiation with the IMF and international creditors, whose differences entailed tried the declaration of moratorium on foreign debt years later.

KEYWORDS:
foreign debt; IMF; Figueiredo administration.