[stop-imf] Rep. Sanders: Brazil IMF Bailout for Banks, Disaster for People

[Robert Weissman]

FOR IMMEDIATE RELEASE
AUGUST 15, 2002
11:19 AM
 CONTACT:
 Congressman Bernie Sanders
Joel Barkin 202-225-4115


Sanders: $30 Billion IMF Bailout for Brazil is a Windfall to Banks, A
Disaster for US Taxpayers Congressmen Calls on Congress for
Investigation

BURLINGTON, VERMONT - August 15 - Congressman Bernard Sanders (I-VT),
the Ranking Member of the International Monetary Policy and Trade
Subcommittee, today called for an immediate Congressional investigation
of the recent $30 billion International Monetary Fund (IMF) bailout of
Brazil. Sanders, who is strongly opposed to the bailout and considers it
corporate welfare, wants Congress to find out why U.S. taxpayers are
being asked to provide billions of dollars to Brazil and how much of
this money will be funneled to U.S. banks such as Citigroup, FleetBoston
and J.P. Morgan Chase. These banks have about $25.6 billion in
outstanding loans to Brazilian borrowers. U.S. taxpayers currently fund
the IMF through a $37 billion line of credit.  Sanders said, "At a time
when we have a $6 trillion national debt, a growing federal deficit, and
an increasing number of unmet social needs for our veterans, seniors,
and children, it is unacceptable that billions of U.S. taxpayer dollars
are being sent to the IMF to bailout Brazil. This money is not going to
significantly help the poor people of that country. The real winners in
this situation are the large, profitable U.S. banks such as Citigroup
that have made billions of dollars in risky investments in Brazil and
now want to make sure their investments are repaid. This bailout
represents an egregious form of corporate welfare that must be put to an
end. Interestingly, these banks have made substantial campaign
contributions to both political parties."

Sanders noted that the neo-liberal policies of the IMF developed in the
1980's pushing countries towards unfettered free trade, privatization,
and slashing social safety nets has been a disaster for Latin America
and has contributed to increased global poverty throughout the world. At
the same time that Latin America countries such as Brazil and Argentina
followed these neo-liberal dictates imposed by the IMF, from 1980-2000,
per capita income in Latin America grew at only one-tenth the rate of
the previous two decades.

Sanders continued, "The policies of the IMF over the past 20 years
advocating unfettered free trade, privatizing industry, deregulation and
slashing government investments in health, education, and pensions has
been a complete failure for low income and middle class families in the
developing world and in the United States. Clearly, these policies have
only helped corporations in their constant search for the cheapest labor
and weakest environmental regulations. Congress must work on a new
global policy that protects workers, increases living standards and
improves the environment."

Sanders is the author of the Global Sustainable Development Resolution
that among other things calls for the United States to condition funding
for the IMF, the World Bank and other International Financial
Institutions on support for labor rights, environmental protection,
decent living standards, and support for small and medium-sized local
enterprises.

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