World Bank Lends Record US$ 18 Billion to Brazil and Latin America

    World Bank

    World BankThe World Bank Group (WBG) committed US$ 17.9 billion in fiscal year 2010 – a slightly higher figure over last year’s record lending of 17.1 billion – to support countries in Latin America and the Caribbean (LAC) as they recover from the global financial crisis and resume a path of sustained growth, according to the latest report from the multilateral organization. 

    The region is expected to post 4.5% growth in 2010, with Brazil leading the recovery with a projected 6.5% expansion on account of strong commodity demand.

    Other South American economies such as Peru, Argentina and Uruguay are also expected to reach or pass the 4% growth mark. Mexico’s expansion is projected to rebound to 4.3%, marking the fastest growth pace in almost a decade, while Central American economies will lag in the recovery on weak workers’ remittances from the United States, projecting a 2.7% growth for in 2010.

    Excluding Haiti, growth in the Caribbean region will accelerate modestly to 3.2% in 2010, from 2% in 2009.

    “We continue to see the fruits of our unprecedented support to the region’s recovery as it heads towards solid growth in 2010 and beyond, while renewing our commitment to improving human opportunities for all its citizens,” said World Bank Regional Vice President Pamela Cox.

    In Latin America and the Caribbean, the WBG maintained its strong support for the region approving US$ 13.9 billion in new loans in fiscal 2010, US$ 13.6 billion from the International Bank for Reconstruction and Development (IBRD) and US$ 300 million from the International Development Association (IDA).

    Mexico, Brazil, and Colombia were the largest borrowers, while transportation, public administration and health and social services received the most funding this fiscal year. Support to the region represented 31% of IBRD lending and nearly 24% of total IBRD/IDA lending.

    The WBG’s International Finance Corporation (IFC), which supports sustainable private sector development through financing and advisory services, committed US$ 3.9 billion to private sector projects in Latin America and the Caribbean, of which 897 million were in syndicated and parallel loans, a 25% increase in mobilization over the previous fiscal year. IFC’s investments spanned 23 countries in the region, with a focus on Central America and the Caribbean.

    “In an unpredictable economic landscape, IFC directed significant financial resources into regions where we could do the most good,” said Lars Thunell, IFC’s Executive Vice President and CEO.

    “We mobilized capital to address the major development challenges of our time. We leveraged our global expertise, developing innovative products and services to help our clients succeed. We catalyzed investment in emerging markets, demonstrating to investors that development and commercial success can go hand in hand in these markets.”

    To help countries during the economic recovery, the WBG’s Multilateral Investment Guarantee Agency (MIGA) in fiscal year 2010 provided $18.1 million in guarantees for financial sector projects in the Latin American and Caribbean region.

    In addition, last year MIGA signed a Memorandum of Understanding (MoU) with the Central American Bank for Economic Integration (CABEI) aimed at promoting foreign direct investment in Central American countries by jointly providing non-commercial risk guarantees for projects in a variety of sectors, mostly through coinsurance arrangements.

    “MIGA remains committed to helping the economies of the Latin American and Caribbean region continue on a path of growth by supporting investments that create jobs, lending services to the real economy, and infrastructure,” says MIGA’s Executive Vice President, Izumi Kobayashi. “Countries in the region are also continuing to become major sources of outward investment, and we stand ready to support such developmentally-beneficial activity across borders.”

    Several LatAm countries were able to conduct countercyclical policies, particularly on the monetary front, for the first time in decades. The effectiveness of these policies was complemented and enhanced by the sizeable, flexible, and timely provision of liquidity and budget-support financing from multilateral institutions.

    By early 2010, the region’s international reserves were more than three times what they had been five years earlier. Public sector debt remained manageable, averaging 30% of GDP, and the region underwent no banking crisis, despite the sub-prime-driven global turmoil.

    The current pattern of global recovery has favored the region so far. Countercyclical policies have supported domestic demand in the larger countries and external demand from fast-growing emerging economies, especially China’s, has boosted exports and terms of trade for LatAm net commodity exporters.

    MP

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    • dnb

      It’s all happening….
      And let Brazil tell it , they don’t need anything from anybody:D:D:D

      The chess game resumes. 😉

      Finally some will see that it was ALWAYS international bankers running things, NOT the U.S.. The U.S is just a front everyone loves to hate.:sad:
      The U.S is just the biggest contributor , if I’m not mistaken to this World Bank.

      People need to get with the times and figure and analyze what the REAL agenda is. 😉

      It’s personal,, whether you choose to see it, believe it, or not. 😮

    • Hugo C

      Interesting….
      how you continually rant on how Brasilians are Bra-Zeros and how superior the Swiss are to us…but…but…NOW that it is convenient for you, you choose to hold us to the high standards and moral superiority that you try to beat us down with. Hmmm…hmmmmmmm !

      [quote]Guess why you have so many “blue eyes” all over South America !!!!
      Think about it if you can. [/quote]

      It must have something to do with German migration to Brasil that started in the early 1800’s and peaked in the 1920’s.

      [quote]Have a look at your own ancestrors…more closely, if you are NOT from Indians ancestrors Yourself ! [/quote]

      That was a problem Nazi Germany had in Brasil….interracial marriage is part of our national identity. I guess an old Nazi dinosaur like you would not understand that.

      Go ahead and spew your hate or overweening sense of pride DOWN to us Brasilians….Sieg Heil!

    • ch.c.

      To Hugo C.havez
      And why dont you write as much on where the nazis went after the war with their war treasures…to avoid JUSTICE ?????

      Guess why you have so many “blue eyes” all over South America !!!!
      Think about it if you can.
      Fairy tales will remain fairy tales.
      Have a look at your own ancestrors…more closely, if you are NOT from Indians ancestrors Yourself !

      Hmmm…hmmmmmm !

    • Hugo C

      So you better fingerpoint the AS USUAL BEGGARS for foreign currencies loans !
      It is a shame the Rwandans or the genocide victims in Darfur do not have wealth for the Swiss to steal.

    • Hugo C

      The most disgusting of them all
      [quote]The complicity of the Swiss banks and government in funding the Nazi regime was known at the end of World War II. However, the degree of deceit has only recently become clear.

      During the World War II era:
      Before they were captured by the Nazi regime, an unknown number of Jewish and other Holocaust victims had opened Swiss bank accounts and safety deposit boxes, in order to prevent at least some of their assets from following into Nazi hands.
      German Banker Emil Puhl coordinated a Nazi program during the 1930’s and 1940’s to launder “monetary gold” stolen from the central banks of Europe. It was often smelted in Germany together with “non-monetary gold” — a term used to describe the tooth fillings and gold rings removed from the corpses of Holocaust victims. The Swiss banks accepted the gold and provided loans to Germany. This significantly extended the duration of World War II, and assured the survival of Switzerland as a neutral country.
      Paul Grueninger, police chief in St. Gallen Canton violated regulations and helped thousands of Austrian Jews to escape to Switzerland. He was dismissed from the police force and convicted of fraud. 55 years later, the Swiss government exonerated him, posthumously. 7

      1946: During this year:
      After the war, the Swiss and American governments reached an accord in which Switzerland was to return US$ 58 million to Europe’s central banks. This was about 25% of the country’s estimated windfall. The Swiss government also promised to liquidate about US$ 500 million in German assets in their country, and contribute half to help resettle refugees. They never fulfilled this commitment.
      Holocaust survivors and families of holocaust victims attempted to reclaim their assets deposited in Swiss banks. Some later testified to a U.S. Senate committee investigation that some of the banks required that the families provide death certificates — an impossible task for victims of the Nazi killing machine. Other banks allegedly made only a cursory search, if the relatives could not provide an exact account number. 4
      An American intelligence report, dated 1946-JAN-12, and released by Senator Alfonse D’Amato (R-NY) and the World Jewish Congress in 1997, stated that 280 truckloads of German gold bars were sent from Switzerland to Spain and Portugal between 1943-MAY and 1944-FEB. Swiss officials said that the report was in error; only about 70 truckloads were sent. They commented that it was German gold and that Switzerland only acted as an intermediary.

      1962: Swiss bankers said that they had released the last of their unclaimed wartime bank deposits.

      1995: During this year:
      Swiss bankers announce that they found an additional 775 inactive wartime accounts containing about US$ 32 million. 4
      bulletFederal President Kaspar Villiger admitted that “we bear a considerable burden of guilt for the treatment of Jews by our country”. This was the first admission by a Swiss government leader of any Swiss culpability for the fate of European Jewry; it took them 50 years to finally admit wrongdoing. 7

      1996: During this year:
      Jean-Pascal Delamuraz, the president of Switzerland, said that American efforts to create a “compensation fund” for Holocaust survivors was “nothing less than extortion and blackmail…This fund would make it much more difficult to establish the truth. Such a fund would be considered an admission of guilt.” 5
      Christopher Meili, a 28 year old security guard at the Union Bank of Switzerland halted the destruction of bank documents from the World War II era. He took some of the material that was about to be shredded and gave it to a Jewish agency; it allegedly contained information about specific bank clients. Reuters quoted a bank spokesperson as saying: “In principle the documents and the Holocaust debate have nothing to do with each other.” 5

      1997: The Volcker Commission, led by former U.S. Federal Reserve Chairman Paul Volcker, was set up by the Swiss banks, in cooperation with the World Jewish Congress and the World Jewish Restitution Organization. They started to examine Swiss accounts opened by foreigners between 1933 and 1945. Hundreds of additional accounts totaling about US$ 8 million were found. Bankers also revealed that there are up to 20,000 dormant accounts opened by Swiss citizens during the war, some of which may have been set up to hold assets of Holocaust victims. The U.S. government issued a report outlining the financial dealings between Swiss bankers and the Nazi regime.

      2000: In mid year, the two largest banks in Switzerland, UBS and Credit Suisse, approved a “1.25 billion-dollar global settlement aimed at ending the long-running dispute over Holocaust assets.”[/quote]

      And one of these pollutes to this very day 🙁

    • ch.c.

      it’s all part of the plan for the bankers to get a little more control of Latin America, and I find this practice despicable
      Welll….who do you think ASKED for these loans ?
      The World Bank or the South Americans Governments ?

      So you better fingerpoint the AS USUAL BEGGARS for foreign currencies loans !

    • capnamerca

      So let’s hear . . . . .
      what a bunch of lowlife a-holes the gringos are for loaning this money to their neighbors. Don’t get me wrong, it’s all part of the plan for the bankers to get a little more control of Latin America, and I find this practice despicable, but I get tired of hearing all the insults while these countries have their hands out. Does anyone know that Roussef has one of the bigtime international bankers right at the top of her staff?

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