WASHINGTON (Thomson Financial) - Brazilian Finance Minister Guido Mantega criticized the International Monetary Fund for having been lax in its handling of the US housing-related credit crisis.
'Allow me to point out the irony of this situation,' Mantega told IMF policymakers at the opening of annual meetings of the IMF and the World Bank in Washington.
'Countries that were references of good governance, of standards and codes for the financial systems, these are the very countries that are facing serious problems of financial fragility, putting at risk the prosperity of the world economy,' he told the 24-member IMF steering committee, referring to major industrialized nations.
Mantega reproached the IMF for its stance during financial turmoil that 'has its epicentre in the United States,' by far the largest shareholder in the 185-nation IMF.
'The Fund had little to say that was practical about this crisis,' he said. 'It has been excessively cautious in its recommendations. It justifies this caution by pointing to the unprecedented nature of the problems.'
Mantega said the IMF 'appears to be inadequately equipped to face such a situation.'
The Group of 24 (G24) developing countries, which includes the rapidly expanding economies of Brazil, India and Nigeria, criticized the IMF Friday for failing to prevent the crisis in the US subprime sector. tf.TFN-Europe_newsdesk@thomson.com ro COPYRIGHT Copyright Thomson Financial News Limited 2007. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.