Brazil to lend 186 mln USD to debt-laden Greece

13:33, May 08, 2010      

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Brazilian Finance Minister Guido Mantega announced on Friday that his country will lend 286 million U.S. dollars to Greece through the International Monetary Fund (IMF).

According to Mantega, the money will come from the country’s foreign exchange reserves, which currently amount to 245 billion dollars.

With the aid package, the situation in the financial markets will probably stabilize soon, said Mantega.

Other countries, such as Germany, Italy, and France, will also grant Greece financial aid, in an effort to contain the debt crisis which hit the country and to prevent it from further affecting the rest of Europe.

Mantega expressed his belief that the financial problems which hit Greece will not affect Brazil's economic growth much in 2010, because the country’s economy is solid.

"We have a solid situation," he said.

According to the minister, the consequences of the Greek financial turmoil in Brazil are minor, and will be limited to some devaluation of the Brazilian currency real and some losses in the stock market.

He cautioned that Europe will take longer to overcome the problem.

“The recovery of the European countries will be slower, so we will have to wait longer to increase our exports to the region,” he said.



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