Brazil To Propose BRICS Help Europe With Billions; Aiming To Save Portugal And Spain

How things change. Brazil will propose to the other BRIC countries that they provide billions of dollars in resources to the International Monetary Fund (IMF) as a way to alleviate the crisis in the euro area.

Brazil's  finance minister, Guido Mantega, will present the proposal this week during a meeting in Washington of the BRICs, the source said on condition of anonymity.

"Giving more resources to the IMF seems one of the most attractive options that we have to help Europe," the source said.

Brazil could provide up to $ 10 billion of its own resources to help Europe through various channels, including the IMF or the purchase of sovereign debt, the source added.

Brazil's contribution alone would certainly be too small to make a difference. But a coordinated effort that includes China and Russia in particular, could have a major impact at the time that investors look to the international reserves of emerging economies such hope of help.

A consensus on a coordinated action seemed to gain ground on Monday. The Russian Finance Minister Alexei Kudrin told reporters that countries with substantial reserves could help bail out the euro zone nations under "certain conditions."

The BRIC countries of Europe were already buying bonds issued by the European Financial Stabilisation Mechanism, the Valor Economico newspaper reported on Monday.

Mantega had earlier proposed that the BRICs make coordinated purchases of European bonds, but the idea met with resistance in other group members, who fear the purchase of risky assets or doubt to be able to help. The IMF would be a vehicle "safer" for coordinated action, the source said.

The proposal would meet the desires of two Brazil. The aid could alleviate the impact of the crisis on the eurozone economies in trouble - especially Portugal and Spain, which have large investments in the country.

Greater participation in the IMF could also increase Brazil's power within the institution. Members of the government of President Rousseff have said they see the crisis in Europe and the United States as an opportunity for Brazil and the BRIC countries gain greater importance in global affairs.

One way for the BRIC countries provide more resources for the IMF could be through "New Arrangements to Borrow" - kind of crisis fund currently has about 591 billion dollars available, the IMF said.

Brazil received direct consultation of European countries regarding the purchase of sovereign bonds, the source said, but international reserves can only be used for the purchase of securities with investment grade