Brazil and Argentina pay all their debt to the IMF, in cash

[Barnabas]

record exports in both Brazil and Argentina, have allowed them to save enough dollars to pay all their debt to the IMF.

economic people, what does this mean?

the imf can no longer go and tell them what to do with their economy?

what happens if now they retire their membership from the imf?

[Q Classic]

How long did it take Brazil and Argentina to pay off their debt?

[Barnabas]

Argentina since the mid 70´s.

they started to pay the debt 3 years ago because they had no other choice, since the imf didnt support their economic policies and wouldnt lend argentina any money.

Brazil I dont know

they still have large debts, this is only the imf debt

[child of Thor]

i suppose it will free them up to make stronger links with venezaula? builds a stronger south america against imperialism?

[Q Classic]

Ím no huge fan of the IMF.

After 1997, SKorea took out a US$60 billion loan to stop the disaster; its economy suffered, and it wasn't until they paid off the loan two years later and dropped most of the requirements and strings that came along with it did their economy recover.

[VetLegion]

Relationship with IMF affects interest a country pays on loans from abroad. That's why IMF is going to keep dishing advice and countries are going to keep listening to it politely, even if not implementing it thoroughly.

Brazil and Argentina having repayed the debt to IMF is cool, but not any sort of watershed in my book.

[RedFred]

Don't underestimate Brazil. They shot by Canada to become the second biggest economy in the Americas.

[Barnabas]

I dont think they will do it in the next few years, both countries had to use a rather important % of their central bank dollars to pay this, so most likely the real and pesi will devaluate in comparison to the dollar, which will make both economies smaller in nominal dollars.

[Barnabas]

Originally posted by Brachy-Pride
I dont think Brazil will pass canada in the next few years, both countries (br and arg) had to use a rather important % of their central bank dollars to pay this, so most likely the real and peso will devaluate in comparison to the dollar, which will make both economies smaller in nominal dollars.

[Barnabas]

ok, I am newbie who always screws up when trying to edit a post, wooo

[Bosh]

Brachy-Pride: what part of Bolivia are you from? I used to live in Santa Cruz a while back.

[Dinner]

Re: Brazil and Argentina pay all their debt to the IMF, in cash

Originally posted by Brachy-Pride
record exports in both Brazil and Argentina, have allowed them to save enough dollars to pay all their debt to the IMF.

economic people, what does this mean?

the imf can no longer go and tell them what to do with their economy?

what happens if now they retire their membership from the imf?

Those booming exports have an aweful lot to do with the devaluation of their currencies which caused them to need IMF assistance to begin with.

[Dinner]

Originally posted by Q Cubed
Ím no huge fan of the IMF.

After 1997, SKorea took out a US$60 billion loan to stop the disaster; its economy suffered, and it wasn't until they paid off the loan two years later and dropped most of the requirements and strings that came along with it did their economy recover.

More likely the "strings" the IMF insisted on (meaning the economic reforms) fixed their account deficits so that they were no longer about to default on their national debt. The IMF loans and the unpopular cuts that go with them help to solve the underlaying issues which caused these countries to have a liquidity crisis in the first place.

The main problem is always the same. A country borrowed way to much and spending has to be cut in order to for the government to get back on its feet. Naturally spending cuts are never popular but you can't really raise taxes when an economy is on the verge of depression so spending cuts and market reforms are about the only option they have if they want to fix their economies for the long term.

[Dinner]

Originally posted by Brachy-Pride
I dont think they will do it in the next few years, both countries had to use a rather important % of their central bank dollars to pay this, so most likely the real and pesi will devaluate in comparison to the dollar, which will make both economies smaller in nominal dollars.

No the dollar is likely to continue a slow slide for the next several years. The high trade deficit and the continuing budget deficits are going to weight on the dollar plus it doesn't look like the Federal Reserve is going to keep raising interest rates to much more this cycle.

[Ted Striker]

Well done Brazil and Argentina

Our grip on South America continues to erode