• Categories
  • Archives

Brazil and Mexico Favor Debt Pardon for LatAm. They Just Don’t Want to Pay the Bill.

The Interamerican Development Bank, IDB, should write off Latinamerica poor countries debt because this will contribute to regional development and help reduce illegal migration to United States argued US Hispanic members of Congress.

Fifteen Hispanic Democrats from Congress addressed a letter to US Secretary of the Treasury John Snow requesting he intercedes in favor of the highly indebted countries during the current IDB annual general assembly taking place in Belo Horizonte, Brazil.

In the letter Congressmen specifically mention Bolivia, Guyana, Haiti, Honduras and Nicaragua. They further argue that the IDB must condone debts without imposing "economic conditions" and urgently, since "delays means lost lives".

The Congressmen underlined that poverty, lack of opportunities is one of the main factors behind illegal immigration to the United States, and therefore debt relief in the region will benefit not only poor countries but the US also.

Last year the G-8 group of the world’s richest countries (Canada, France, UK, US, Japan, Italy, Germany and Russia) promised to condone 100% of the world’s (38) poorest countries debts.

Following the G-8 statement the IMF condoned the debts of the poorest countries and the World Bank is scheduled to follow beginning next July.

However no mention was made to the Development banks debts such as the IDB in the Americas. Nicaragua, Haiti, Bolivia, Honduras and Guyana have debts of almost 3.5 billion US dollars with the IDB, according to the Hispanic Congress members. Bolivia owes the majority, 48%, of the five countries total debt to the IDB.

Other organizations would like to see Ecuador and Peru included in the list of condonation.

In his speech before the IDB assembly Bolivian president Evo Morales was the first to propose that the bank eliminate some of the debt of the five countries, Guyana, Honduras, Nicaragua, Haiti and Bolivia. But some Latinamerican countries have reservations including Mexico and Brazil.

Brazil’s Planning Minister Paulo Bernardo said Bolivia’s plans needed much closer scrutiny.

"This has to be talked about and negotiated because the question is, ‘who is going to be responsible in financial terms?’".

Mexico on the other hand which supports the debt relief package, does not want to be responsible for paying for it, said Mexico’s Finance Minister Francisco Gil.

Besides, President Morales’ administration has announced its intention of nationalizing the country’s natural gas reserves and increasing the price of gas for export.

This decision would have an important impact on Brazil, said Sergio Gabrielli, the president of Brazilian oil company Petrobras. Brazil and Bolivia are scheduled to begin talks on the issue in the coming days.

"We have no problems in discussing prices, but Bolivia supplies half of Brazil’s consumption and any alteration in prices will have an impact in demand," added Mr. Gabrielli.

According to the Brazilian press, Bolivian gas costs US$ 3.2 per million BTU, and in New York Mercantile Exchange the price is just above US$ 7 per million BTU.

Mercopress – www.mercopress.com

Tags:

  • Show Comments (2)

  • Bill Seucretino

    This is one of the most ridiculous and ignorant answers that I have ever seen ! W O W !

  • Guest

    “because this will contribute to regional development and help reduce illegal migration to United States argued US Hispanic members of Congress.”

    What total and utter bullshit! Like the “forgiving” of these debts are going to directly contribute to the improvement and betterment of the economy in those countries, generate jobs, have an impact on poverty, etc. A large percentage of this debt has been deposited directly into the accounts of the corrupt politicians in these countries!! Now they should just be forgiven?? For what? To continue to reinforce the current attitudes of corruption that already exists?!!

    NO, actually, what needs to be done is not a “forbearance”, but an INCREASE in the interest and penalties imposed in case of late payments or no payments! That way, when the few that are educated in these countries discover the “safadeza” from their own politicians, maybe their start to kill a few of the bastards!

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

Present and Future of Ethanol Are Bleak in Brazil

Brazil’s minister of Mines and Energy, Edson Lobão, explained that neither the Brazilian government ...

Brazil’s Lula Stands Up for Ministers Charged With Corruption

Brazilian President Luiz Inácio Lula da Silva defended, Thursday, August 25, the Ministers of ...

At Least 7 Vying for House Speaker in Brazil. Election on Sep 28.

Preparations are underway for the election of a new president of the Chamber of ...

Amid Poverty and Decaying Neighborhoods the Drug Business Is Thriving in Brazil

Grajaú Bus Terminal, São Paulo Capital South Region. For years, the government of São ...

President’s Rise in the Polls Is Sinking the Brazilian Real

Brazil’s real advanced from a seven-month low as the Brazilian central bank signaled it ...

Cover story – Not for Kids

It was a moment of pure electricity and emotion that only live-TV is capable ...

Brazil Dictatorship’s Legacy: a First-World War Industry

Brazil has become a high-tech and growing civil-military power in the same league as ...

Dreamers of Brazil, Wake Up!

There is no better indication that the ruling Workers Party (PT) in Brazil has ...

Living the Moment in Brazil

My Brazilian niece, Luiza, is getting ready for her first semester in university. I ...