Lagarde: "It is in the BRICS' interest to create as much confusion as possible."
The IMF director's statement was made in response to a question about the discrepancy in versions of emerging market contributions to the fund, which exceeded expectations by raising US$430 billion.
247 – Brazil wanted to announce the BRICS aid to the International Monetary Fund's new anti-crisis barrier only in June. But it was outmaneuvered by Russia and China, who informally commented on the value of their contributions. The scene was criticized by the IMF director, Christine Lagarde: "It is in their [BRICS'] interest to create as much confusion as possible," Lagarde told Folha yesterday. With the "donation," the fund exceeded its projected target and raised US$430 billion.
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The Managing Director of the International Monetary Fund, Christine Lagarde, yesterday criticized the BRIC countries (Brazil, Russia, India and China) for the cacophony created around the IMF's new anti-crisis barrier, which aims to protect member countries in case of future economic turbulence.
"It is in their [BRIC's] interest to create as much confusion as possible," Lagarde told Folha yesterday, at the conclusion of the IMF's Spring Meeting, when asked about the discrepancy in versions of the emerging economies' contribution.
Smiling, however, the IMF chief confirmed that the BRICS had brought her figures that they avoid making public.
After two unproductive semi-annual meetings and months of negotiation, the IMF concluded yesterday's meeting with US$430 billion (R$808 billion) at the new target, meeting its goal and calming markets amid volatility in the European Union.
The figure exceeded expectations (US$400 billion), but fell short of the US$500 billion target set a month ago.
The cacophony of the BRIC countries, however, marked the meeting.
Brazilian Finance Minister Guido Mantega spent two days insisting that the strategy of waiting for the G20 summit in June to declare figures was a joint one, aimed at pressuring progress on reforms to the IMF quota system, which was approved in 2010 to give more weight to emerging economies.
The commitment appears in the final communiqués of the meeting, as Brazil intended. But it depends on the goodwill of the legislatures of countries like Germany and the USA.
The Brazilian, however, was contradicted on Saturday night by his Indian counterpart, Pranab Mukherjee, who stated that the delay in officially announcing the figures was due to the need for China and Russia to approve the contributions through their respective offices.
"We will announce [the investment] at the appropriate time, but we are not setting any conditions," he said.
The Russians have informally said they should contribute at least US$10 billion, and the Chinese would give US$60 billion.
The division became evident when Lagarde, in announcing the mechanism, retracted her initial statement, in which she thanked Moscow and Beijing separately for specifying contribution amounts.
The $70 billion was included in the IMF's total $430 billion bill with no stipulated source. The expectation is that the funds will be released for loans as soon as the anti-crisis barrier is formally created.