Brazil's representative to the IMF, Paulo Nogueira Batista, said today that aid to Europe from Brazil and other BRIC countries through the IMF is contingent upon the final outcome of talks among European leaders.
Batista said emerging market countries could not be expected to help resolve the European crisis without agreement on a plan by the countries involved.
European leaders are scheduled to wind up a two-day meeting in Brussels today to cobble together a clear plan resolving the continent's debt woes.
If the Europeans agree on a plan, Mr. Batista believes the IMF could put together a multilateral aid package as early as the start of 2012 for the nations hurt by the crisis.
As far as funding Brazil's contribution, Brazilian authorities have said they would consider using some of the country's $350 billion in foreign reserves for this purpose.
If Brazil and other BRIC countries do contribute to a European bailout via the IMF, they plan to use that as leverage for them to gain more participation in the IMF through increased quotas in the institution.
The IMF is currently dominated by the United States and Europe, but the influence of Brazil and other emerging market countries will inevitably grow as developed countries struggle with their debt problems.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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