Lula: Brazil Doesn’t Need Foreign Loans to Keep Growing

In an address, Monday, January, on a national radio and television pool, Brazilian President Luiz Inácio Lula da Silva said that by liquidating Brazil’s debt to the International Monetary Fund (IMF), the country will be able to invest more on the population.

"By gaining sovereignty, we are turning a page in our country’s history. Brazil will move forward under its own power," Lula affirmed in the 9-minute speech.

Lula also noted that "the best thing" is that this financial independence is happening together with a series of other accomplishments by the Brazilian people, just when, according to him, Brazil is achieving the best results in recent years in reducing poverty and distributing income.

According to Lula, the Brazilian government repaid the IMF the US$ 15.5 billion in standby funds obtained to deal with the 2001-2002 crisis.

"We are proving, among other things, that we no longer depend upon foreign loans to keep growing; we can do it with our own resources. This means independence and development," he affirmed.

Among the country’s other recent accomplishments, he highlighted the growth of the salary mass and the increase in personal credit, as well as record exports.

Lula remarked that, when he took office, the country was spending US$ 3 billion per year on social programs. "In 2005 we invested US$ 7.4 billion. And this year we will reach US$ 9.6 billion, directly benefiting 40 million poor Brazilians," he said.

In December the Brazilian government announced it would pay off its US$ 15.5 billion debt to the IMF ahead of time. Last week the managing director of the IMF, Rodrigo de Rato, from Spain, visited Brazil to make the advance payment official.

Agência Brasil

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  • Guest

    And he doesn’t tell you that his vast social programs don’t even amount to 5% of government spending!
    If he could control the waste, he could spend $40B USD on social programs. And, it would hurt to improve primary education which is the only real way out of poverty!

  • Guest

    Brazilian accounting and statistics.
    No one could ever reconcile 2 government numbers/statistics.

    This is how brazilians citizens are cheated by the people they elected.The cheaters, the elected people, just provide erroneous rosy, and on purpose, inacurate numbers.

    Nothing is right, nothing is correct !

    LAMENTABLE !

  • Guest

    A joke, a true joke !
    US$ 7.4 billions being 17 billlions Reais divided by 40 millions equals to REAIS 425.- PER YEAR PER POOR !!!!!

    OR 35 Reais PER MONTH for every poor citizen !

    OR 15.- US$ PER MONTH for every poor citizen.

    And this is assuming that the number of 40 millions poors are correct.
    Because in brazilian own statistics the percentage is 26 %.
    And 26 % of 185 millions should equal to 48 millions, not 40 millions.

    Therefore the 425 Reais per year, Reais 35.- per month or US$ 15.-per month should be reduced by 20 % !!!!!

    And this is again assuming that the 26 % of poors in government statistics is correct !!!!

    So the new numbers of REAIS 340.- per year, REAIS 28.- PER MONTH or US$ 12.- PER MONTH PER POOR………STILL REMAIN HIGLY DOUBTFUL!!!!

    Demonstration that Lula is lying through his teeths.

    And he his proud of his achievements !

    Sure ! Yeahhh !!

    Cheers

  • Guest

    No need of foreign loan ???????
    Therefore why still continue the regular borrowing in foreign currency as you do ????????

    Brazil has still very large outstanding debts in US$.

    Saying that Brazil doesnt not need foreign loans is simply……UNTRUE ! And if this is true, why not repay immediately ALL your foreign currency loans ?

    Lula the liar will remain eternally… a liar !!!

  • Guest

    Lula is manipulating numbers again !
    January 2003 the Reais was worth 0.27 to the US$
    December 2005 the Reais was worth 0.44.
    Or an increase of 63 %.

    US$ 3 billions were worth 11 billions Reais in 2003.
    US$ 7.4 billions were worth 16.8 billions Reais in December 2005.

    Therefore, in local currency terms, the increase is around 50 % (Reais 11 to 17 billions) and not 150 % (US$ 3 to 7.4 billions).

    99 % of spendings in social programs are spent in local currency not in a foreign currency !!!!! That means that showing his spendings in US$ instead of Reais is pure numbers manipulation.

    Lula the magician is in fact just a manipulator of numbers, but a very bad one ! He only wants to show the non-reality !

    Even his US$ 7.4 billions amount is contradictory, because on his last televised speech, he announced that the number was US$ 10 billions !!!!!!

    Smile….-;-)))

    Simple demonstration that he is not only lying openly to the brazilians citizens, but also that he simply doesnt know what he is talking about and that he doesnt not even remember was he said publicly just a few days earlier.

    Just bullshit is this guy and his obviously on purpose wrong numbers.

  • Guest

    Millions, Billions, Trillions, Whateveri
    Lula remarked that, when he took office, the country was spending US$ 3 billion per year on social programs. “In 2005 we invested US$ 7.4 billion. And this year we will reach US$ 9.6 billion, directly benefiting 40 million poor Brazilians,” he said.

    Are this US$ 15.5 billion paid just the interest or effectively the principal.
    Anyone care to answer?

    Funny, how come nobody in the lower classes noticed that.
    Now comes the question: Is there a way to PROVE that 40 Mil brazilians have received any of this “benefit?

    This president is the man !
    7.4 Billions- What a nice diner would that make in Brasilia for the corrupts. How much they got in their pockets by the way?
    Throw a party for PARTY.

    Name one of the 40 Millions who has seen any status change. JUST ONE is enough. Childreen welcome.

    Hey, brazilian people. Do you really belive in all what the president said?

  • Guest

    BULL
    [B]B U L L S H I T[/B]

  • Guest

    BULL
    [B]B U L L S H I T[/B]

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