Brazil bank chief believes developed countries face crisis

Special Report:Global Financial Crisis

RIO DE JANEIRO, March 5 (Chinese media) -- Developed countries will face difficult

debt loads after the global financial crisis has been resolved, a Brazilian bank

leader said Thursday.

Luciano Coutinho, president of Brazil's Development Bank, also said at a

development seminar that the developed countries' currencies would be weaker. He

said there would be disagreements on whether the U.S. dollar should continue to

be treated as the standard unit of currency in international markets.

To Coutinho, the developing countries are being affected by a shortage of

credit and the fall of exports to developed countries.

"These economies, which have the largest domestic market but a smaller

dependency to the international trade, are capable of increasing the private

domestic demand and can structure domestic financings to replace the external

credit," Coutinho said.

Still, Coutinho said, even those countries will undergo some struggles with

a drop in capital flow.

"The capital flow to developing countries, which was of one trillion U.S.

dollars before the crisis, will fall to about 100 billion U.S. dollars in direct

investments," he said. "Only Brazil, China and one or two other countries will

attract investments this year."