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Lula da Silva criticized the IMF for 'suffocating' the Argentine economy


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 to

become 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 bankruptcy of the banks"

, he assured.

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


look also

Brazil is "back": Lula da Silva marks presence at the start of his official visit to China

Official visit: Lula landed in China and was received by Dilma Rousseff

Source: clarin

All business articles on 2023-04-13

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