Brazil to lend $10 billion to the IMF
The President Luiz Inácio Lula da Silva announced today that Brazil will lend 10 billion dollars to the International Monetary Fund. The money is part of a $1.1 trillion package agreed at the end of the G20 summit in April to boost international financial institutions, international trade and economies that are struggling with the economic crisis.
Lula told Reuters agency that the deal was settled with the Treasury Minister Guido Mantega on Tuesday. According to Lula, the action will give Brazil the "moral authority" to demand changes "much needed" in the IMF and other multilateral organisms.
Lula advocates for a stronger voice for the emerging economies in organizations such as the IMF and World Bank in order to make them truly multilateral.
The negotiations had been going on for some time. At the G20 meeting, Lula had said he wanted to be the first Brazilian president to be able to lend money to the IMF. "Don’t you guys think it’s very ‘chic’ for Brazil to lend money to the IMF?", he asked reporters.
In 2005, Brazil paid off its $5.5 billion debt to the IMF two years ahead of schedule.
Photograph of President Luiz Inácio Lula da Silva by World Economic Forum