Christine Lagarde, managing director of the International Monetary Fund, appeared to have averted a crisis in relations with Brazil last week after a long phone call with its finance minister on a serious subject.
Paulo Nogueira Batista, representative for Brazil and 10 other developing countries on the IMF’s executive board, had just delivered a stern rebuke over the bailout programme for Greece and abstained in a vote to authorise the latest payment to the cash-strapped Aegean nation. Guido Mantega, Brazil’s finance minister, assured Ms Lagarde that the director had acted unilaterally and failed to consult Brasília, making it clear that Brazil supported the Greek bailout.
But yesterday fresh doubts on Brazil’s stance were stoked when Mr Mantega said he continued to back Mr Batista as its IMF representative, essentially giving him a mere slap on the wrist for poor communication. He added that the rescue programmes for Greece and other eurozone countries need to be “reviewed and improved”.