Brazil, Russia Trade Treasury Bills For IMF Clout

Brazil and Russia are set to unload US Treasury bonds as they acquire $10 billion each of new International Monetary Fund (IMF) securities designed to bolster the institution's aid programs, officials in the countries said Wednesday. The moves are part of a bid by the so-called BRIC nations -- Brazil, Russia, India and China -- to play a bigger role at the IMF and other international institutions...." [The Wall Street Journal/Factiva]

Xinhua writes that "...Brazilian Finance Minister Guido Mantega...said the [IMF] loan will be made in the form of bonds, thus it will not affect Brazil's foreign exchange reserves, which currently total about $200 billion. With the loan, Brazil will join the group of 47 countries which regularly finance the IMF's operations. 'In the past, the IMF helped Brazil. Now, Brazil will loan to the IMF to make the international trade viable,' Mantega said...." [Xinhua/Factiva]

AFP adds that "...IMF Managing Director Dominique Strauss-Kahn welcomed the move, saying 'Brazil once more reaffirms its strong role as a leading emerging market economy.' He added, in a statement: 'The Brazilian authorities have shown great leadership and engagement in the whole process of IMF reform and expansion of our funding, and I am pleased that Brazil is clearly showing its strong support to the international economic and financial system.'..." [Agence France Presse/Factiva]

BRIC Nations Call For More Balanced IMF.

Brazil, Russia, India & China (BRIC) Saturday sought a re-balancing of representation on the executive board and the International Monetary and Financial Committee of the International Monetary Fund (IMF). The demand was made at the G20 finance ministers' meeting being held near London.... They also asked for speeding up of the second phase of voice and representation reform in the World Bank group by April 2010.

The BRICs said it was necessary for developing countries to have a greater voice and representation. Similarly, leadership of the IMF and World Bank should not be subject to 'nationality or regional considerations.'

In related news, it was reported that the G20 summit should find ways to give other states a say in decisions by the world's richest to mitigate disasters like the US mortgage loan crisis, Russian President Dmitry Medvedev said Saturday.

Reiterating Russia's view that global finance needs sweeping reform, Medvedev said new tools and rules were needed 'so that the problems which start in one state will not trigger the hardest chain reaction' in others..