Brasília – Brazil is going to allocate further funds to the International Monetary Fund (IMF) in order to curb the effects of the world economic crisis, especially in Europe. The announcement was made after a meeting of the Brazilian minister of Finance, Guido Mantega, with the IMF’s managing director, Christine Lagarde, in the Brazilian capital Brasília.
“Brazil is willing to collaborate by providing the funds. This time, the IMF is not bringing us money as it did in the past; rather it has come to borrow money from Brazil. I would rather be a lender than a borrower. Ours is a broad-ranging cooperation and we will strengthen it even further,” said Mantega.
According to the minister, the funds are meant to minimize the impact of the European crisis. “I believe the Eurozone possesses the tools to overcome the crisis, but in the meantime the situation is getting worse. We are concerned not only with European countries, but most of all with emerging ones.”
Even though guarantee has been given on the financial aid, figures have not been set yet. According to Mantega, the sum will be decided on by the Bric countries (Brazil, Russia, India, China and South Africa) prior to the G20 summit, due February. Furthermore, the figures “are conditioned to the continuation of the quota reform [IMF voting rights] which has been agreed upon” in the last two years.
*Translated by Gabriel Pomerancblum
