Global Courant 2023-04-13 21:08:11
The president of Brazil said that the BRICS bank is a way of “independence” from international credit organizations.
The president of Brazil, Luiz Inácio Lula da Silva, criticized the International Monetary Fund on Thursday for “suffocating” the Argentine economy due to the demands required to meet foreign debt obligations. It was during a speech at the New Development Bank, the development bank of the BRICS (Brazil, Russia, India, China and South Africa), as part of their tour of China.
“Countries cannot be suffocated as Argentina is now doing with the IMF and as they did with Brazil and other countries,” Lula said when celebrating the inauguration of former President Dilma Rousseff at the helm of the NDB.
Lula defended trade and financing in local currencies without the use of the dollar and vindicated the NDB as a way of becoming independent from the “moorings” of traditional financing organizations, referring to the IMF and the World Bank.
“No ruler can rule with a knife to his throat because the country is a debtor. The multilateral banks should put tolerance in each renewal of agreements. The dream of creating the BRICS was to create a development instrument,” Lula said. at the headquarters of the Global South Development Bank, located in Shanghai, on the first day of his China tour.
In addition, he criticized the way in which the countries got into debt just to cover the financial account and not allocate loans from the IMF or private banks to motorize development or infrastructure.
“All countries can borrow, of course. But to carry out works, assets that were not there before, to have more production capacity. We want to see that world from now on, not the world of those who think that the geniuses who think about the economy and then they want the State to save the banks from bankruptcy,” he said.
Lula cited the case of the bankruptcy of Lehman Brothers in 2008 in the United States and the recent crisis of the Swiss bank Credit Suisse. “They gave lessons in wisdom and Switzerland had to invest 8% of its GDP to save private banks,” the former metallurgical leader lashed out.
Source: Telam
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