U.S. loan to Brazil
Sir,—lf privately owned international banks have been foolish enough to make loans to countries such as Brazil, who may find it difficult or impossible to repay them, then it is for the stockholders, and possibly the depositors of these banks to bear the loss from any debt default, according to capitalist
principles. Eager for profit, they have made loans that the I.M.F. would not consider prudent, which have merely delayed a Crisis. It is not for the I.M.F. to advance money to these countries, so that the loans to private banks may conveniently be repaid, thus transferring the burden of default on to the world's taxpayers. Governments, if they choose, can always rescue their own international banks from insolvency on terms they can dictate — terms that are suitable to their own taxpayers. Any reform of the monetary system can at this stage only be a palliative: eventually the crisis will break, but with greater force.—Yours, etc., F. ROBINSON. December 7, 1982.
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Press, 9 December 1982, Page 20
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165U.S. loan to Brazil Press, 9 December 1982, Page 20
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