''Brazil is on a solid long-term policy trend which strongly deserves the support of the international community,'' the managing director of the I.M.F., Horst Köhler, said in a statement issued late this afternoon. In a reference to the contentious presidential election that is less than two months away and has generated market nervousness, Mr. Köhler also said that ''the fund stands ready to support any government committed to sound policies.''
Brazil's agreement leaves only Argentina without financial protection among the three troubled South American countries that Mr. O'Neill has visited this week. On Sunday night, as Mr. O'Neill was arriving in the region, the United States announced that it was making an emergency $1.5 billion bridge loan to Uruguay, reversing a policy that had been in place since the start of the Bush administration.