IMF backs Brazilian plan, clearing way for big loan

Brazil received International Monetary Fund endorsement of its 1983 austerity program, paving the way for formal approval of a $4.5 billion IMF loan to bail out the debt-ridden nation.

Despite reports Brazil might suspend payments on its $88 billion foreign debt , the world's largest, Planning Minister Antonio Delfim Netto emerged from a five-hour meeting with IMF officials saying Brazil will honor its commitments. The agreement is expected to clear the way for the government to request fresh loans from private banks. A meeting with Brazil's 40 most important creditors has been set for next Monday.