The IMF wants more money to act as lender of last resort, and Brazil is stepping up:
Brazil, an emerging economy, said on Monday that it will spend 10 billion dollars (6.8 billion euros) on buying IMF bonds to boost the fund's power to help countries through the global crisis.This is yet another example of Lula's concerted effort to elevate Brazil's global presence, hard on the heels of his successful bid for the Olympics.
It was the first time that Brazil, Latin America's economic giant, has lent money to the 186-nation International Monetary Fund.
"We have gone from being debtors to creditors," Brazilian Finance Minister Guido Mantega said ahead of IMF and World Bank annual meetings which begin Tuesday.
"This contribution is an expression of Brazil willingness to play a greater role in the fund and support the institution and its objectives," he said.
Brazil paid off its own IMF debt a few years ago, and now will try to use its money as leverage to influence IMF loan policies.