Brazil’s Lula to Seek Support from BRICS Development Bank to Help Argentina

Lula and Alberto Fernández, of Argentina, met in Brasilia

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Bloomberg — Brazil President Luiz Inácio Lula da Silva on Tuesday said he’s actively working to help Argentina overcome its financial crisis after meetings with its president, Alberto Fernández, in Brasilia.

The two met for about four hours at the Brazilian presidential palace to discuss Argentina’s high inflation and how to address the challenges facing Brazilian businesses struggling to sustain exports to the neighboring country.

“I will make any and all sacrifices so that we can help Argentina in this difficult time,” Lula said, standing alongside Fernández. The Brazilian president added that he asked his Chinese counterpart Xi Jinping while in Beijing last month to also support Fernández.

One approach, he said, would be to finance exports and make loans trough Shanghai-based New Development Bank, a multilateral development bank established by the BRICS countries, which, along with Brazil and China, include Russia, India and South Africa. Former Brazil President Dilma Rousseff is the bank’s chief executive.

Lula said it will be necessary to change some internal rules, but he is talking to Rousseff. Taking aim at the the International Monetary Fund — which has a $44 billion loan agreement with Argentina — Lula said he is working “to remove its knife from Argentina’s neck.”

Fernández said Brazilian Finance Minister Fernando Haddad will travel to Buenos Aires next week to discuss an agreement on financing for Brazilian exporters.

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