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Lula admits that Banco dos Brics’ loan to Argentina will not come out

Lula admits that Banco dos Brics’ loan to Argentina will not come out

President Luiz Inácio Lula da Silva admitted on Tuesday that the granting of a line of credit to Argentina by the New Development Bank (NDB, for its English acronym), known as Banco dos Brics, which he was trying to make work, had gone bad.

Lula with the President of Argentina, Alberto Fernandez, at a meeting in Brasilia at the beginning of May: the loan concession to Argentina from the Dos Brix bank remained in the promise filming: Wilton Jr / Estadao

Like the Estadao Last week, there was resistance from the countries associated with the institution to release the “parrot” promised by Lula, the President of Argentina, Alberto Fernandez. Contrary to what Lula envisioned, there was a lack of support to promote the change in the bank’s statute that was necessary to carry out the operation, as the National Development Bank was established with the aim of financing infrastructure projects exclusively for its members and not granting liquidity loans to third parties.

Nor was there any support for the proposal to grant guarantees to finance Brazilian exports to Argentina, which was another option advocated by Lula, to mitigate the crisis the neighboring country is going through, exacerbated by the low level of foreign exchange reserves, currently estimated at about US$2 billion.

According to the Spanish agency efeLula confirmed in a tour of journalists following the conclusion of the meeting of South American presidents in Brasilia that it was “not possible” to implement the deal due to the “difficulty” that exists in changing the bank’s statute, today directed by former President Dilma Rousseff.

Earlier, Finance Minister Fernando Haddad, who virtually participated in the annual meeting of the National Development Bank’s governors, which was held in Shanghai, said that “there was no time” for the group to analyze the loan to Argentina, according to published information. daywhich classified the outcome of the meeting as “another Brazilian elegance” for the country.

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Founded in 2015 by BRICS, a group formed by Brazil, Russia, India, China and South Africa, the NDB now also includes Egypt, the United Arab Emirates, Bangladesh and Uruguay, which have been accepted as members in recent years.