Brazil Finance Minister Resigns

Brazil’s finance minister resigned today amid reports of deep divisions in the government of President Jose Sarney over economic policy and means to deal with a $100-billion foreign debt.

Presidential sources said Sarney was surprised to receive Dornelles’ resignation, but other sources said it was a result of a deep division over the amount of spending cuts needed to reach agreement with international bankers over the massive foreign debt. The Globo radio station said Central Bank President Antonio Carlos Lemgruber was also likely to offer his resignation.