MercoPress. South Atlantic News Agency

Latam positive about G20 results, but implementation is also vital

The G-20 summit decision to inject 1.1 trillion US dollars to the global economy to prop trade and overcome the financial collapse can be beneficial for Latinamerica but measures have to be implemented and proven efficient, according to experts from the region.

“These resources will generate more liquidity worldwide and have a positive impact on the region’s countries. With a reduction of systemic risk, this is positive for the whole world”, said Jose Augusto Fernandez, Brazil’s National Industries Confederation CEO.

“With more liquidity, and from the moment our trade partners are facing credit problems because of lack of financing, when credit begins flowing again, the whole world system is oxygenized” he added.

“For Latinamerica the 1.1 trillion injection is very good news”, said Erik Haindl from the Gabriela Mistral University in Chile. “This effort will provide IMF and the World Bank with the resources they never had, and at a moment when there should be or rather, we are facing financial contraction it will help them give capacity to rescue those countries in need of help”, he emphasized.

Closing the summit with a unanimous speech, G20 countries also offered a contribution to alleviate the global financial crisis, said Eduardo Blasco an Argentine economist from Consultants Maxinver.

“The concrete measures decided are not that important on themselves, but the mere fact the summit took place and released a joint statement, is most positive. I think what is most valuable is transmitting confidence and a clear message that countries agree”, added Blasco.

Mario Marconini, head of the Sao Paulo Industries Federation International Negotiations department underlined not only was the “positive atmosphere” and the prevailing “coincidences spirit” essential, but also the decision to support world trade with financial resources “is most welcome”.

“Injecting 1.1 trillion US dollars to markets is very positive, particularly the 250 billion to promote trade. This helps a lot and will certainly benefit Brazil directly”, said Marconini.

However he was also cautious about the fact that the real extent of the crisis remains unknown and so does how efficient the package is and how efficiently will it be applied. “Confidence building is the foundation but so is time, how long to the implementation and results”, he underlined.