April 20, 2012 - 13:35 AMT
PanARMENIAN.Net - The International Monetary Fund's bid to win a big boost in funding to handle the euro-zone debt crisis hit a speed bump on April 19 when Brazil demanded more power at the IMF for emerging economies as a condition for lending it extra cash, Reuters reports.
Brazilian Finance Minister Guido Mantega laid out the terms for a deal after a meeting with fellow BRICS nations Russia, India, China and South Africa.
"We are not ready to set a figure, because there are preconditions that have not been fulfilled by the countries - whether they will comply with the agenda of reforms," he said.
Support from China, Russia and Brazil is critical to strengthening the firepower of the IMF.
Its managing director, Christine Lagarde, wants at least $400 billion in extra funds to protect countries from any worsening of the euro zone debt crisis. So far, Europe and Japan have pledged $320 billion and the IMF is relying on the BRICS to plug the hole as it seeks to double its war chest.
Calling the euro zone the "epicenter of potential risk" for a world economic recovery that is "timid and fragile," Lagarde had said earlier on Thursday she was working on a deal.
"We expect our firepower to be significantly increased as an outcome of this meeting," she said at a news conference to kick off the spring meetings of the IMF and World Bank.
The IMF firewall would complement the $1 trillion in emergency funds for Europe agreed upon by the EU leaders last month. Lagarde welcomed those funds as a "significant" step toward addressing euro-zone problems but also urged the EU to use that money to directly inject capital into banks.