As a result of the economic policy of recent years, Brazil is one of the most prepared countries to face the worsening of the current international crisis, said today (1st) the Managing Director of the International Monetary Fund (IMF), Christine Lagarde. In an interview to the press along with the Finance Minister, Guido Mantega, she stated that Brazil is protected by the macroeconomic fundamentals.

"No country can be completely immune to the crisis, but some are better prepared than others. In our vision [IMF], Brazil is more protected than any other country because of the strength of the internal market and of good financial and macroeconomic policies”, she said.

To Lagarde, the three pillars that govern the Brazilian economic policy since the end of the decade of 1990 - inflation targets, floating exchange rate and fiscal responsibility - ensure the robustness of the country at this time of international economic turbulence. "Brazil went through a history of crisis and reconstruction and now has a capitalized financial system and a sound economy," she added.

At the meeting, the international economic situation and possible contributions that countries will need to make to the IMF to expand the capacity of the Fund to help countries in difficulty was discussed. The Finance Minister stressed that this was the first time that a leader of the IMF comes to Brazil to ask for resources, although negotiations with developing countries are expected to last for months.

"This time, the IMF did not come to bring money but to ask money to lend to developed countries. I prefer to be the creditor, rather than the debtor”, said Mantega. Despite having been committed to help the IMF, the Minister argued that the contribution is to be made by means of direct agreements between the Fund and the country.

However, he did not specify the amount that Brazil could lend.

In the morning, Lagarde met with the President Dilma Rousseff. She lunched with Mantega and met with the President of the Central Bank, Alexandre Tombini.

02 December 2011