BRAZIL SAYS DEBT CRISIS IS WORLD PROBLEM Brazilian Finance Minister Dilson Funaro said his country's foreign debt crisis could only be solved by changes in the international financial system. Speaking to a business conference he said "It is not Brazil that has to make adjustments with the IMF (International Monetary Fund). It is the international financial community that is taking away resources from the developing countries." "The crisis is not in Brazil, a country that has had the third biggest trade surplus ...In the past two years Brazil had remitted 24 billion dlrs in debt servicing and received only two billion in fresh funds," he added. Funaro said that during his recent trip to the U.S., Europe and Japan to explain Brazil's decision last month to suspend interest payments on 68 billion dlrs of commercial debt, he stressed the country's commitment to growth. "We need to and will make the effort (to solve the debt problem) but we cannot make an effort that means we stop growing," he said, adding that political and not purely commercial solutions were needed to the debt crisis. Brazil, whose 108 billion dlr foreign debt is the largest in the developing world, has been under pressure from official and private creditors to work out an economic adjustment program with the IMF to combat rocketing inflation and foreign payments problems. President Jose Sarney's government has repeatedly refused to approach the Fund, arguing that an IMF programme would lead to recession. Funaro said that in his talks with creditors he had tried to restore credibility in the country in the hope of finding a lasting solution to the debt problem. "We are negotiating so that the debt question should not be one of continuous crisis." To sustain internal growth Brazil would have to import more machinery and equipment this year and export fewer raw materials. The country was thus targetting a fall in this year's trade surplus to 8.0 billion dlrs from 1986's 9.5 billion. Domestically, Funaro said economies had led to a reduction in the public sector deficit to 2.7 pct of gross domestic product in 1986, the lowest for many years and that this should fall to 1.5 pct this year.