Brazil refused to back new IMF aid for Greece, says billions at risk

WASHINGTON/ATHENS,  (Reuters) – Brazil’s executive director at the IMF refused to back the Fund’s move this week to keep bank rolling Greece, citing risks of non-repayment, and the Fund itself said Athens might need faster debt relief from Europe.

The abstention by Brazil from the IMF decision was revealed in an unusual public statement yesterday, highlighting growing frustration in emerging nations with Fund policy to rescue debt-laden Europeans.

“Recent developments in Greece confirm some of our worst fears,” said Paulo Nogueira Batista, Brazil’s executive director at the IMF, who also represents 10 small nations in Central and South America, the Caribbean, Asia and Africa. Batista clarified on Wednesday that he was speaking only for himself.

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