Lula calls for IMF reform in meeting with general director, Haddad and Dilma

President Luiz Inácio Lula da Silva (PT) met with the director general of the International Monetary Fund (IMF) this Monday morning (4) and reaffirmed the request for reform in the multilateral finance body. This is one of the PT’s demands for the temporary presidency of the G20 this year, and is commonly cited in speeches in which he criticizes the current structure of international organizations, such as the United Nations (UN).

Lula met with Kristalina Georgieva alongside Finance Minister Fernando Haddad and Dilma Rousseff (PT), who presides over the New Development Bank (NDB, also known as the “BRICS Bank”). The meeting was held behind closed doors at Palácio do Planalto, but the president stated on social media that the conversation focused on topics such as social inclusion and poverty reduction.

“We also talk about the necessary reform of the IMF, so that we have an International Monetary Fund that is more representative of the world today and capable of helping countries that need to resort to the IMF in better conditions,” wrote Lula.

The speech is similar to that of Haddad, who wrote that “sustainable development with social justice implies a reorganization of relations between countries that need to resort to the IMF and how the Fund can be a catalyst of opportunities for several developing countries”.

Dilma Rousseff did not comment on the meeting.

Lula has advocated a reform in global governance to ensure greater representation of developing countries and favorable financing conditions to promote socioeconomic development. One of the proposals discussed by Brazil at the G20 is the possibility of exchanging debts for investments, aiming to offer better credit conditions and rates for developing countries, especially in Africa.

Haddad clarified that this proposal is not about debt forgiveness, but rather refinancing under more favorable conditions.

Brazil has advocated that multilateral credit institutions, such as the IMF and the World Bank, prioritize the needs of developing countries, mainly in the area of ​​infrastructure, and study alternatives to renegotiate debts of nations in financial difficulties, such as Argentina.