• Categories
  • Archives

Brazil Turns a Page. Now It’s the IMF that Owes Her Money

Brazilian currency Brazilian currency

Brazilian currency For the first time ever, this Monday, Brazil turned from debtor into a creditor of the International Monetary Fund when it formalized a decision to buy US$ 10 billion worth of IMF notes nominated in SDR (Special Drawing Rights).

"This is historic, it's a radical change, Brazil no longer is a debtor nation, we are now creditors of the IMF," said Finance minister Guido Mantega after delivering a letter formally confirming the acquisition of IMF bonds.

"Brazil hereby confirms its decision to help increase the resources available to the IMF, as a way to contribute to ensuring the necessary means to effectively respond to the ongoing financial crisis," said the letter addressed to IMF managing director, Dominique Strauss-Kahn.

For Brazil, which has seen sharp improvements in its economy during the past decade as it consolidated public finances and brought inflation under control, the decision marks a big shift, underlined Mantega.

Mantega recalled that back in 2002 Brazil had access to a stand-by fund of 30 billion US dollars in anticipation of possible turbulences and speculation following fears about the victory of president Luiz Inácio Lula da Silva, the former union leader, as president of Brazil.

However Lula applied a strict orthodox policy, balanced the budget, and by the end of 2005 was no longer in debt with the IMF.

Brazil is also one of the countries which seems to be recovering faster from the world recession and last Friday received world acknowledgement when Rio de Janeiro was selected to host the 2016 Olympics.

"The subscription of IMF notes is for two years," said Mantega, adding that it is important Brazil should be investing part of the country's international reserves, "but this does not mean for Brazil a reduction of funds' availability: it's only a change of assets."

"With these funds the IMF can help poor countries in need of liquidity," said

Mantega said that BRIC members (Brazil, Russia, India and China) decided to purchase US$ 80 billion IMF bonds, China 50 billion and each of the other three, US$ 10 billion.

However BRIC countries are requesting that their contributions to the New Arrangements to Borrow, NAB, should be reflected in the IMF decision making process.

The NAB facility with US$ 500 billion will enable the IMF to extend loans, more expediently, to countries in difficulties.

If the proportionality is accepted, 80 billion represents 16% of the 500 billion and in practical terms means BRIC countries could have a blocking power.

Last Sunday Strauss-Khan announced the IMF needed a "considerable increase" of resources to help the countries worst hit by the greatest recession since the Great Depression.

Mercopress

Tags:

  • Show Comments (15)

  • Leo Bonneville

    TO OUR BELOVED STAT GUY: Ch. C
    just for your information,

    Brazil didn’t need the 30 billion from the IMF, that was in case of instability after my so called Robbin Hook took office… IMF kept the 30 Billion and Brazil flourished into the Elite Brazil we are now witnessing..haha yes how patriotic of me… but this is fact!

  • Leo Bonneville

    Switzerland or sweden.. Doesnt matter..
    Lets be honest here, I may be young, and an idiot but one thing remains… and that’s you Ch.C.. and since you feel so qualified to speak on Brazil, lets talk about your tiny, puny, safe heaven for criminals like the people responsible for this recession, nation. but before we start let me guess, for Swiss standards, you just dont cut it, right? Thats why you figured you can learn about the injustice going on in 3rd world countries and become an expert in being a scumbag, telling people why their country sucks so bad, while yours is just a safe heaven for the politicians running these inferior countries, right?

    you can take your comparative stats and shove it where it belongs, but.. but.. but.. before you do that.. take a real good look in the mirror and see for yourself that you’re at the bottom of the barrel when it comes to your own people and this is why you have to pick on people who you feel are inferior to you.. and this is where you made your mistake!

    haha no one ever said Brazil is doing everything right, they are trying and thats all itz citizens can ask, its just too bad you had to pick a country where its citizens are so proud to be Brazilians that all your stats piled up together equals to shit to any Brazilian, and Im a Brazilian-American, so I care even less… trust me, measures are being taken in Brazil to conform with the world standards for powerful countries living in the 21st century.. too bad theres nothing exciting going on in switzerland(oh I knew you were not from Sweden but since Switzerland doesn’t have a soccer team, thats who you guys root for, right?). let me guess, so BRAZILIAN of me?

    Thank you for the advise but I’m just gonna keep being myself… People love me, and Im well respected for such a young man, yeah I’m 24.. now I’m just not sure I can say the same for you..too bad you’re an old man, with old ideology and who can’t reinvent himself.. but hey at least you’re from Switzerland, a capitalist country with less than 8 million people,with no racial diversity and lots of college graduates, right? I mean your medium household income is around USD80,000.. you are rich, smart, and intellectual.. a Perfect Nation with perfect citizens.. Not to forget your governments gets to tax money that other governments can’t, more power to you.. the free heaven your government gives to criminals is really an inspiration to many nations…

    Look forward to reading more from you Ch.C.. You are so wise that one can only be so luck to be lucky enough to meet such a person…

    yours trully Leo Bonneville,

  • ch.c.

    To Forrest….Brazil…..IMF and 2002 !
    In reality things were more curious than normal.

    1) Brazil already had huge debts with the IMF
    2) But for whatever reason they got an additional $ 30 billion in 2001 I believe.
    3) but….but…..the IMF did not disbursed these $ 30 billion contrary to the normal way. The IMF kept them. But these $ 30 billion were allowed to be accountable in the Brazilian total foreign currencies reserves…because considered as……available !

    Strange, unconventional.But so it was.

  • ch.c.

    Leo Leo the little boy
    if you were a little boy in 1994, you should be barely above 20 or not even…by TODAY !
    And you already know so many things in geography, history or economy !

    😮

    In my view, You too should re-invent yourself before it is too late.

    😮

  • ch.c.

    Leo Bonneville,The Real Brazilian Idiot & Junkie….proven !
    If you are mixing Swiss with Swedish….DUMBASS YOU ARE !
    Unless like a typical brazilian you are always right even when wrong !!!!!!!
    Or eventually ypi too got a SP University licence, found in detergent packs !!!!!!

    Laughs….laughs….laughs….laughs !

    On a more serious note, AS USUAL, NO BRAZILIAN EVER COME UP OR CHALLENGE ME WITH FACTUAL COMPARTITIVE STATS !
    Thus your statements of Brazil Prowess Cant be factually proven.

    You are like the student, noted and ranked as one he worst in its class, that still pretend and maintain to be the best !
    Somewhat the same with your sarcastic answer and at the same time goofing between Switzerland and Sweden !

    I repeat once more, please come up with comparative stats on any of my statements made on my previous thread that prove me wrong and you right !!!!!
    That should not be too difficult since you know how right you are….apparently !

    idiots always have the wrong answers or aguments. Or no arguments or no answer ! Otherwise they would not be told that idiots they are !

    And dont worry I wont associate you with a dictator, but did you go to the same University as Robbing Hook ?

    And Viva Sweden or Switzerland. Eventually they are the same country but just spelled out in different languages !
    Tell us the truth Leo Bonneville !

    Are you now red faced due to shame, pale faced due to anger, or rainbow faced due to shame, anger and no factual facts on my statements ?

  • Leo Bonneville

    Ch. C
    Quiet amused by your arrogant tone, you must be a very emotional person, divorced a few times? who perhaps hates Brazilians? haha, I must say, Im glad to hear that you are Swiss as my last memory as a boy before leaving Brazil was Brasil beating Sweden 1-0 in the 1994 world cup. but let me guess, you dont care about sports, right? who gives you the right to judge a nation based on the corruption going on in the government, perhaps you recommend a government coup? or let me guess you dont know anything about that, you’re a stat guy, right?

    I will say this, Brasil needs leadership that has the people in mind, not leadership that receives kick-backs and vote against the people, leaving horrible infrastructural problems nationwide while not providing support for its young entrepreneurs. its time Brasil steps up, this I agree with!

    and please dont associate me with a dictator who loves himself more than he loves his nation…Prick!

    Leo Bonneville

  • Leo Bonneville

    Treasurer
    Haha that I need to go back to school and study this subject there is not question about it, one fact still remains, BRASIL is not the only country where government corruption occurs, in fact, I’d say there is more here in the (dis)United States where for one instance, your so called “People’s Senators” take money from private insurance companies for their campaigns and yet when its time to vote for Health Care Reform, in who’s favor are they going to vote for? definitely, not the peoples and this is legal, there is nothing wrong with receiving money from whomever wants to donate it to you, I mean as long as you keep doing what benefits them, right? That’s how laws staying intact I believe…I might be mistaken though…

    But anyways, my point here is not that Brasil is the greatest, best nation in the world, in fact FORREST, I agree with you on many things that Brasil does wrong, from human rights issues to insecurity, to inequality, I mean the list goes on and on but at the time where the whole world is in distress, mostly caused by the developed nations and practices, at a time where the world needs new leadership and new ways of moving forward and studying the past so it doesn’t repeat itself, I believe Lula and his administration is showing the world that Brasil is here not only to follow but to be a leader in the 21st century, and Im sure he knows we have a long way to go but if we give our citizens the chance to succeed, everyone will see that Brasil can really help bring the world together and transform the world.

    I agree Brasil wants the easy way in and are always looking to benefit themselves, but lets be real here, doesn’t everything developed country want the same thing for themselves? with the only exception being that Developed nations “help the international community, thru service” and they make most of the decisions too, or at least used too.. where have you seen a international law where its for the advantage of Africa? if its in regards to economy, trade, human rights, I mean, slaves were taken by force and yet has there been any restitution to millions and millions of family affected by slavery trades? their gold? taken from them by force, obviously there have been some acknowledgment but certainly not enough, so please spare me your Brasil is the most uncivil, disgusting, corrupted nation in the world and no one can ever trust a Brazilian crap, there are bad people in all places my friend, and its not hard to find them.

  • ch.c.

    Brazil is finally changing its ways,
    1) a 5-7 years trend doesnt make a secular trend change until proven otherwise !
    Sorry for you…IDIOT !
    How many times have we heard in the past….this time is different….until it was not so much different ?

    2) Your “But we all know about hatred in America”
    Why dont you re-read the many many harsh and arrogant critics of Your President toward Bush, Obama or America, OR Europeans, and then re-read the other way around of when Bush or Obama or Europeans were always NOT harsh on their critics toward Brazil ?
    Who was the most critical against the OTHER ? Brazil against America or America against Brazil ? Brazil against Europe or Europe
    against Brazil ?
    Lets face it your Robbing Hook public statements are quite close to Chavez the Clown anti America rethorics !

    3) If you refer your own critics toward myself…ch.c., then you are even more wrong.
    I am not American, but Swiss !!!!!!!

    Proofs that you really dont know what you are talking about and even less who you criticize !

    Bad luck…IDIOT !!!!!!

    And as to the Brazilians “prowess” for their exports, dont stay as idiot as you are.
    The per capita annual exports is at about US$ 1000.- !
    That’s all.
    Whoaaaaaaaaaaaaaa !
    Easily beaten by many many emerging nations, including Thailand, if you did not know yet !
    Even beaten by Argentina, Uruguay, Chile, if you did not know.
    I wont even compare with my own country…because I could see from here your red face of inferiority !

    In the meantime keep your endemic disease and continue caressing your navel.
    MANY OTHER EMERGING NATIONS TOO HAVE RE-INVENTED THEMSELVES – NOT ONLY BRAZIL – IF YOU COULD AT LEAST READ THE COMPARATIVE STATS !
    Can/could you do that ?
    Show us. Simple
    Come back with comparative stats for the last 7 years since Robbing Hook has been elected initially !
    Facts remains that Brazil had to change their “methodology” in 2007 to have better comparative stats even retroactively, so that Robbing Hook was less lagging against other emerging nations.
    But still lagging nearly ALL emerging nations, wether you like or not !
    Even lagging against the three other BRIC members !
    Even lagging ALL Mercosur members !
    Even lagging nearly all South and Central America countries !
    Even lagging nearly all Asian countries !
    Even lagging MOST African countries !

    Just in case you did not and still dont know….IDIOT !

    Brazil is even lagging others emerging nations as to the….RE-INVENTING themselves as stated by yourself, until proven otherwise.
    This will be shown in all comparative stats !

    I feel deeply Sorry for your….. BRAZILIAN MEGA EGO !
    But you are not going to change the comparative stats.
    To my knowledge…….Brazil remains in the 120th place or so out of 180 or so countries ranked in the Doing Business Report….wether you continue to caress your navel or not ! Which is basically a No change…since Robbing Hook was elected !!!

    And to my knowledge despite Brazil has historical record low interests rates……So do nearly all the countries on earth.
    Colombia is at 4 %, Chile at 0,5 % ! America at near zero, Euro at 1 % or so. Also unheard in their history.

    And finally also to my knowledge, despite the historical low Brazilian rates, BRAZIL STILL HAS THE WORLD HIGHEST RATES….AFTER INFLATION ! At about 4 % above INFLATION from your central short term rates.
    And at about 8-9 % above your inflation rate for Brazilian Government Bonds in local currency for a 7 years maturity !
    Another World Record…to my knowledge !
    Thus lagging other emerging nations is QUITE NORMAL under these interets rates environements you feel so proud…apparently !
    And lagging other emerging nations, Brazil will continue definitely…wether you like it or not. There eventually will be an exceptional year here or there…but the trend wont change…..for sure….until you are more competitive with your local rates on an after inflation basis !

    It is not as you state how people RE-INVENT themselves against…themselves previously….that counts !
    But it is comparatively how they re-invent themnselves….against the other nations….in the same class, namely emerging nations….that counts ! And you Did Not Do Better Than Them…But WORSE ! Because as stated earlier….most emerging nations have RE-INVENTED themselves too and they did better than Brazil…… until you come up with counter comparative stats !

  • Leo Bonneville

    Treasurer
    This forum is a joke, you guys speak like you know everything when in fact you know nothing.

    Let me start out by saying that the racist comments and anti-Brazilian propaganda being done here is a disgrace to any citizen of any Country, Brazil is finally changing its ways, looking for progress all foreigners can do is tear it down, belittle its citizens, not to forget all the labeling going on. One thing is for sure, Brazil is growing and moving towards a great era of development and people who feeling like they cant be a part of it, try to put something special down, yes its special that a South American country is finally moving towards a 1st world way of life. removing its citizens from poverty and trying to control violence(most poor are from decedents of natives and slaves.. but that’s a different subject..)

    Brazil is trying to redevelop itself and the world should embrace this as it would make it for a better world… But we all know about hatred in America, don’t we?

    Leo Bonneville
    leo@signaturegrouputah.com

  • ch.c.

    Zico !
    So true !
    in the early 1980s the U.S. garanteed some of the Brazilian Government Debts issued in US$ !
    Their names were BRADY BONDS ! Not a 100 % U.S. garantee but sometimes it was the interests only, sometimes up to
    35-50 % of the capital “only” !
    And there were a good 5-6 Brazilian bail out over the decades. The last being the one in the early 2000 !

    Why doesnt Brazil bails out the USA in reciprocity and gratitude now ? 😉
    Because never ever is Brazil grateful to whoever ?
    When they do things right it is due to their cleverness and when things are bad it is due to OTHERS, as usual !

    And Brazil is now a creditor nation to the IMF, but…but…but…. they still benefit tensssss of billions US$ from the World Bank Purse !
    In fact by well over US$ 100 billion outstanding loans !
    But of course….hiders as brazilians are omit this “$ 100 billion or more… DETAIL”….on purpose…..of course !
    As I said more than once, Brazil has an endemic disease : they cant stop caressing their navel !!!!

    Hmmmmm

  • JAY GLENN

    It’s amusing how we measure a country by its currency.
    It’s not what you have that matters, but what you do with what you have.
    Feed the poor, buy nuclear subs.
    House the poor, or build walls around them.
    Build Hospitals, or build Olympic stadiums.
    Clean up your act, or fine newspapers for printing the truth.
    Police serve and protect, or work overtime in hit squads.
    Deal with your own Problems, not preach about others short comings.
    Rejoice in your wins, not CrÀƒ©u to others lose.
    Be up standing, not childish.
    Super powers or third world nations.
    Small dog barking at everything from behind the fence, or the big dog quietly watching the pedestrian walk by, he knows he can take care of business and knows the world realizes that also.

  • João da Silva

    [quote]Many times in this forum I have brought the subject of Haitian colonization to the readers, with little response.[/quote]

    Because most of the readers are not as smart as we are, Dr.Cata . In case you missed my comments, I am against our intervention in Haiti, Honduras, Afghanistan, Iraq, etc; In fact, I am against our kissing asses of anybody to get a permanent seat in the UNSC, as I think that U.N. is going the same way as the “League of Nations”.

    The French? Ask “The Guest” about his opinion. 😉

  • Lloyd Cata

    When The Whore Becomes The Pimp
    [b]”With these funds the IMF can help poor countries in need of liquidity,”[/b]

    There is a history of IMF “help” to those countries needing “liquidity” and that history has not benefitted the “people” of the debtor countries. The IMF has consistently required the “people” to suffer increased hardship while really bailing out the caudillos and their foreign investors. Increasing the price of staples like bread and gas, and now overseeing the institution of payment for water by indigenous peoples. Now agreeing to finance multinational corporate investments that put water rights of companies ahead of the people! This has been a disaster. The IMF has in fact institutionalized economic slavery throughout the third world. Together with the World Bank, this organisation has been the criminal “loan shark” for the Empire and its greedy bankers.

    [b]Statement by Guido Mantega, Minister of Finance, Brazil
    On behalf of Brazil, Colombia, Dominican Republic, Ecuador, Guyana, Haiti, Panama, Suriname, Trinidad and Tobago
    “The IMF has to become a more representative institution. If it manages to do so, it will inspire more trust and more confidence throughout the world. The Fund will cease to be regarded as mainly an American-European institution and become a truly multilateral institution.”[/b]

    Please, I ask everyone reading this to look at the conditions that the IMF is imposing on the Haitian people. Forget the last 50 years of Western “benevolence” in Haiti. Forget PapaDoc and BabyDoc; the Duvalier tyrants supported by the US and France. Forget the US/French overthrow of the peoples elected government of Mr. Aristide. Now the IMF will give the “Haitian people” a loan that will further impoverish the poorest country in the Western Hemisphere. It will strip the Haitian people of any ownership rights in their own country so they can worship at the alter of capitalist economic servitude. Capitalist economic slavery is alive and well.
    Brazil appears to want “reform”, but that reform appears to be only “inclusion” in the club of IMF social engineers. Can anyone argue that Haiti would have been worse under Mr. Castro than it has under the thumb of the Empire? Brazil now has troops(UN) enforcing this economic and political servitude and yet proposes to act for the Haitian people. LIES, LIARS, AND HYPOCRITES!!!

    Many times in this forum I have brought the subject of Haitian colonization to the readers, with little response. I can only wonder if it is your shame or your ignorance that prevents the world from recognizing this for what it is. There is more to this story; having to do with the western intelligence agencies, drugs, and the CIA, but that would be exposing a conspiracy which is always frowned upon in this forum! 😥

  • Forrest Allen Brown

    ch.c
    was it not in 2002 that the US paid off some 10 billion loand to the IMF for brasil and this is the same government that still call the US a war mongor , when they went to Irque , but now want s help for there involvment in Hounduras .

    did they not call the US anminals for having a cuban boy in courts after his mom died on the way to the US and his dad was still in cuba , but yet today shea goldman is still in brasil even though he has no blod parent in brasil .

    brasil cries not to have to pay its way but demands all to pay it ..

    brasil wants free trade but closes its ports to import from other countries .

    brasil claimes to be friends with many nations only if it is to there benfit

    Leo Bonneville
    we think you need to go back to school and see the indefference brasil holds to other countries .
    your brasil politicans and police are your down fall
    your own country goverment says it is okay to have sex with minors once in a while .
    your own police traffic in child sex slaves , then cry when they get caught and let go REAL FIRST WORLD THERE
    they comitt murder and walk away , they rob people and business and sleep well at night as tey are protected by brasilian law .

    did you know if a brasilian comtts murder in another country , your own goverment has a amendment that the brasilian canot be deported to stand trail or be tried in brasil for the crime . REAL FIRST WORLD THERE

    some people here go over board but most time brasil is overboard

  • Zico

    Comedy
    Guido Mantega (sounds like a Monty Python name for an Italian gangster) could start this historic “New Page” by paying back all the loans Brazil renegged on in the past. What a joke this story is.

Your email address will not be published. Required fields are marked *

comment *

  • name *

  • email *

  • website *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Ads

You May Also Like

Brazil Kayapo's war dance

Brazil’s Indian Warriors Gather to Keep Amazon Waters Flowing Free

For five days in May, hundreds of tribal people from the far reaches of ...

World Wants to Know About Brazil’s Zero Hunger

On the eve of the UN conference on poverty and hunger, Brazil has prepared ...

Brazil’s Gol Reduced Fares Flying High

Gol, Linhas Aéreas Inteligentes, Brazil’s low-fare, low-cost airline, is celebrating the success of its ...

Brazil Uses Bamboo Handicraft to Generate New Jobs

A sustainable development program in the bamboo productive chain is contributing to the improvement ...

Portugal Telecom

43% of Brazil’s GDP Represented in Business Gathering in Portugal

Telecom, a telecommunication company from Portugal with a big presence in Brazil, is organizing ...

Petrobras rig

US Judge Hears Investors Claiming to Be Defrauded by Petrobras

Brazil’s state-run oil company Petrobras urged a U.S. judge to throw out an investors’ ...

Venezuela's President Hugo Chavez

Brazil Senate Intent on Blocking Venezuela from Mercosur over TV Shut Down

Despite recent conciliatory gestures between the presidents of Brazil and Venezuela, Brazil's Senate has ...

Condition of Number 1 Poultry Exporter Keeps Brazil on Edge on Bird Flu

Paulo Magalhães, a member of the Aerospace Medical Society (Sociedade Brasileira de Medicina Aeroespacial) ...

Who Killed Jean Charles? Brazil Wants London to Answer.

The director of the Foreign Ministry’s Department of Brazilian Communities Abroad, Manoel Gomes Pereira, ...

The revolution of the landless

President Fernando Henrique Cardoso has been slow to honor his promises of settling landless ...

gyan