Latin American states react mixedly to world financial crisis
8/10/2008 17:01
Latin American countries yesterday reacted differently to current world
financial crisis with some urging for more support from developed nations and
some taking active measures against it.
Brazilian President Luiz Inacio Lula
da Silva criticized the so-called "casino set in the US economy," adding that
the poorest countries can not afford to take financial adventures.
Lula said
that he had tried to discuss the crisis with G-8 countries twice, but did not
come up with any solution.
The president said that Brazil had prepared to
cope with the crisis but rich countries are the one who should solve the
problem.
Argentina's Central Bank President Martin Redrado ruled out the
possibility that the country could suffer a similar economic crisis like the one
at the end of 2001.
Redrado said that Argentina had "a hard and flexible
currency and financial system. "We are on conditions not only to keep the
stability but to protect our economy in this change of context," Redrado
said.
Chilean Treasury Minister Andres Velasco said that Chile would address
the current world financial crisis with solidity and tranquility.
"Chilean
financial system is a solid conjunction, it is well regulated and well
capitalized, but this does not mean that we should not pay attention, we must be
very alert," Velasco said.
The government has taken corresponding measures to
face in a good way the global scene and "the fundaments of the Chilean economy
allow us to be tranquil," Velasco said.
Meanwhile, Chilean President Michelle
Bachelet said that it was "life irony" that rich countries now had a financial
crisis and were on the edge of a recession.
"For years the rich countries and
international financial centers taught lessons to Latin America on how to
organize and modernize its markets" and now we see those rich countries are on
crisis for lack of regulations, Bachelet said.
The Shares Selective Price
Index (IPSA) from Santiago, main index of the Commerce Bourse of Santiago,
yesterday registered a drop of 2.34 percent after Monday suffering the worst
drop in a decade.
Venezuelan businessmen said yesterday that they were
concerned about the effects of the US financial crisis on Venezuelan
economy.
"Venezuela will not be immune to the world crisis and our economy is
not armored for the effects of a global recession," said Jose Manuel Gonzalez,
president of the Fedecamaras Organization which groups regional commerce and
industry associations.
Gonzalez said that it was not an exclusive task for
the government but for all sectors in the country to face the crisis and reduce
its impacts.
If it could be a deceleration, Colombia will not have a
recession and it will evade the international financial crisis, Colombian
Treasury Minister Oscar Zuluaga said.
"We can give a general report of
tranquility and normality on the financial system," Zuluaga told the local
press.
The minister added that Colombia has a good system of supervision and
it has defined good mechanisms of regulation for market operation.
Ecuadorian
government said that it would seek resources and new export markets for such
products like flower, cacao, banana and shrimp, which are affected by the US
financial crunch.
Ecuadorian Agriculture Minister Walter Poveda said that "it
is not possible yet to know which are going to be the direct qualitative and
quantitative effects of the US crisis, but this will not create a crisis in
these sectors."
Meanwhile, Particio Pena, president of the Stock Bourse of
Quito, said that the US financial crisis would affect Ecuador, mainly on
exports, remittances reception of the Ecuadorian immigrants and even the
employment.
Some 50 percent of the Ecuadorian exports go to US market,
according to Pena.
Latin American bourses yesterday replicated the losses
from Monday despite the general expectation for at least a technical bounce of
the main indexes.
Xinhua
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