MercoPress. South Atlantic News Agency

Brazilian minister criticizes “moaning” countries.

Brazilian Finance Minister Antonio Palocci criticized countries that “spend their time insulting the International Monetary Fund”.

Speaking to investors in the Bank of England in London Mr. Palocci said that "in our continent it is very common for countries to take loans and then spend their time insulting the IMF. This attitude of blaming others leads to the over-fall of our governments. If I spend one or two years telling the people I can't spend more because of IMF demands, they'll get fed up with me and will kick me out".

However when asked if he was referring to the Argentine situation Mr. Palocci quickly denied any reference.

Mr. Palocci a former Trotskyite and currently the most ardent defender of orthodox fiscal and monetary policies together with Jose Dirceu, Brazilian Cabinet Chief are the main and closest advisors of president Luiz Inacio Lula da Silva.

Mr. Palocci and Mr. Dirceu seem a closely knit team but privately Mr. Dirceu criticizes the orthodox policies arguing that "they could be more flexible". Last year the Brazilian economy contracted 0,8% and experienced record unemployment in industrial areas with all sectors linked to domestic consumption demanding an immediate change and lower interest rates. The equivalent of the prime rate in Brazil stands at 16,5% with inflation below 9%.

"We must assume the tough policies we implement. Blaming others only leads to the over-fall of governments", insisted in London Mr. Palocci who in spite of the good relations between Argentine and Brazilians presidents, Kirchner and Lula da Silva, is not loved by the Argentines according to the Brazilian press.

Apparently during the recent drafting of the "Rio Declaration" launched by presidents Kirchner and Lula da Silva and questioning some of IMF policies, Mr. Palocci was not entirely convinced about conditioning repayment to creditors to the performance of the economy.

The final draft of the declaration in its first point simply said the economic policy implemented "must not compromise growth".