72356
                             Republic of Brazil: State of Rio de Janeiro
                       Fiscal Efficiency for Quality of Public Service Delivery
                                      Development Policy Loan

                                    SUMMARY OF DISCUSSION

                                  Meeting of the Executive Directors

                                              August 30, 2012



       Executive Directors approved a Fiscal Efficiency for Quality of Public Service Delivery
Development Policy Loan to the State of Rio de Janeiro, Brazil in the amount of US$300
million, on the payment terms and conditions set out in the President’s Memorandum (R2012-
0166).

        Directors expressed support for the operation, which would improve fiscal management,
social service delivery in health and education, and public financial management. Directors
commended the government for sound macroeconomic management, a prudent fiscal policy
stance, and a solid financial system. Directors stressed the importance of ensuring that the
benefits of the operation reach the poorest regions of the State, and underscored the importance
of gender in the operation. They noted the assessment of fiscal risks and urged maintaining close
dialogue with the authorities on the fiscal outturn. Directors also encouraged the dissemination
of the reforms supported in Rio de Janeiro to other client governments, within and outside Brazil.
Finally, Directors urged strong coordination with state agencies and donors.





    This summary is not an approved record.