Brazil: “No longer to subordinate to IMF”

[Say_What]

<clips>

Brazil announced Monday that it will not renew the stand-by credit agreement it signed with the IMF in September 2002 because the good shape of the national economy makes it superfluous

Brazil, the IMF's largest debtor, said improved fiscal controls and external accounts, combined with the best economic growth in a decade, had cut its vulnerability to foreign financial shocks and improved its creditworthiness.

Brazilian President Luiz Inacio Lula da Silva, a longtime critic of the IMF before becoming president, said the decision to end support showed his unpopular spending cuts and commitment to orthodox fiscal policy had paid off.

"This decision was taken with the calm and serenity of a government that, with the sacrifice of all Brazilians, won the right to walk with its own two legs," said Lula, who faces re-election in October 2006.

http://www.falkland-malvinas.com/Detalle.asp?NUM=5351

[warrens]

1. That's what you get for electing a socialist!

Financial stability, economic growth, social justice...everything the right wing opposes.

IMF, dirty MF
Take away everything it can get
Always make sure there's just one thing left
Leave em on the hook with insupportable debt.

Bruce Cockburn

[Spazito]

2. Yep, can't have those damn 'socialists' soiling up

their countries by actually looking after their citizenry, it goes against all that is 'right'!

[orwell]

3. Bravo

It is great to see our South American neighbors throwing off the shackles of economic tyranny foisted upon them by anti-free market financial thugs at the IMF.

Ah...Freedom is on the march...

[Robbien]

4. I am not too sure this is a good thing for Brazil

as the article says "The Washington-based multilateral lender backed Brazil's move not to renew and has urged it to use high interest rates and spending cuts to stabilize the economy and help repay the fund $23.2 billion still owed."

That sounds like more privatization, less social programs and higher taxes are on the way for the middle and poorer classes.

[kaitykaity]

5. They must have a Hugo Chavez in training.

Hope, hope, hope.

:evilgrin:

[Judi Lynn]

6. Best wishes to Brazil. They deserve the chance to get back on their feet

It's wonderful seeing the new, talented, courageous leaders coming forward in Latin America, working for their countrymen, not some morally diseased, power-mad, right-wing psychopaths in Washington.

From the article:

Finance Minister Antonio Palocci said Brazil could weather future shocks and did not require terms of an IMF accord to cut its high public debt.
He also said Brazil would stick with its current budget surplus target of 4.25 percent of GDP, a level sufficiently high to keep its debt load on a downward trend.

"Brazil is doing much better, there are no storm warnings in our future," said Palocci, who in 2003 had his effigy dragged through the streets by protestors shouting "IMF Out!" after he slashed public spending.

In 2004, the Brazilian economy grew by 5.2 percent.