LATIN AMERICA

 

Brazilian President Calls For Tightened Bank Regulations in Developed Countries

Rio de Janiero - Brazilian President Luiz Inacio Lula da Silva called on the developed countries to tighten bank regulations to create favorable condition for the recovery of world economy, local media reported Friday.

Only with strong regulations can banks and the financial market as a whole give a boost to the production sector, he said.

The president said the current situation calls for actions rather than words.

"Either we take the responsibility for this crisis and find a way out or we will end up like Japan, which in the 1990s took ten years to overcome a (similar) crisis," he said. "We cannot wait ten years."

He also called for the resumption of the Doha Round talks of the World Trade Organization and criticized the protectionist measures taken by some developed countries.

"Brazil is against the return of protectionism," he said.

Lula made the above remarks on the eve of his meeting with U.S.President Barack Obama in Washington. The two presidents are expected to discuss such topics as the international financial crisis, the U.S. embargo on Cuba and the U.S.-Venezuela relations.

Lula said he thinks the United States will tide over the crisis soon, noting its recovery is important to the whole world.

On the upcoming summit of Group of 20 scheduled for April in London, he voiced his optimism on the outcome of the gathering.