The Associated Press Published: September 1, 2006
RIO DE JANEIRO, Brazil The South American trade bloc Mercosur on Friday demanded greater voting power in the International Monetary Fund.
"We think that as a bloc of South American countries, our participation should be bigger," Brazil's Finance Minister Guido Mantega said after meeting with Mercosur finance ministers in Rio de Janeiro. "Our representation is not proportional to our political or economic importance."
The IMF is expected to finalize a decision to grant China, Turkey, Mexico and South Korea a greater voting share in its operations at a meeting this month in Singapore, giving them more say over which countries get IMF loans and what economic measures they must adopt to qualify.
Mantega said the fund also should increase the voting power of South American nations.
Brazil, Argentina, Uruguay, Paraguay and Venezuela are full members of Mercosur. Bolivia, a Mercosur-associate, also participated in Friday's meeting.
Argentina's Finance Minister Felisa Miceli said Mercosur's finance ministers were united in their call for a greater voting share in the IMF. Developing countries in general should have more participation in the fund, Miceli said.
"A greater participation in the fund, gives a greater and cheaper access to loans," she said.
Miceli also reiterated a demand for the IMF to grant automatic contingency credit lines, from which countries in financial trouble could draw without having to meet IMF-set economic policy requirements.
Brazil and Argentina also said Friday that the countries may begin using their own currency instead of the U.S. dollar in bilateral commercial transactions. The measure could take effect next year.
http://www.iht.com/articles/ap/2006/09/01/business/LA_FIN_Brazil_Mercosur.ph p
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