With a Toy Weapon Former Official Takes Hostage and Demands Cleaner Politics in Brazil
After holding hostage a hotel employee in downtown Brasília, the capital of Brazil, for ne...

Read more

"We Are Not Dying," Answer Indigenous Peoples to Sensationalized Photo Expo
An Amazon Indian protested outside the exhibition of controversial photographer Jimmy Nel...

Read more

Brazilian Nattan Pires: a New Star in the World Fashion Constellation
In the competitive world of international fashion, the Brazilian model Nattan Pires has s...

Read more

Bahia Port in Brazil Gets Green Light Despite Greens' Opposition
The government has authorized the beginning of the construction of Porto Sul, in the city...

Read more

President's Rise in the Polls Is Sinking the Brazilian Real
Brazil's real advanced from a seven-month low as the Brazilian central bank signaled it w...

Read more

Brazil President Tells UN She Wants More Power for Developing Countries
President Dilma Rousseff criticized on September 24 the delay in providing developing cou...

Read more

Brazil's So-called Free Electoral Ad Time Costs Taxpayers US$ 350 million
According to Brazilian law, open television channels and radio stations must set aside a ...

Read more

Former Political Prisoners in Brazil Visit Place Where They Were Tortured
Former political prisoners, accompanied by experts and members of the National Truth Commi...

Read more

Brazil Presidential Candidate Marina Silva Vows to Promote Democracy in Cuba if Elected
Brazilian resident Dilma Rousseff's main foreign affairs' advisor Marco Aurelio Garcia de...

Read more

Fear Campaign in Brazil Hurts Marina and Helps Reelection of President Rousseff
Brazilian President Dilma Rousseff effective television campaign seems to have eroded Mar...

Read more

Rio Celebrates Car-Free Day Promoting Bike Riding
A number of actions were staged in Rio de Janeiro, Brazil, in observance of the World Car...

Read more

Brazil Takes to the Streets in Defense of Religious Freedom
Nearly a thousand people took part in the 7th Walk for Religious Freedom along Copacabana ...

Read more

With a Toy Weapon Former Official Takes Hostage...
"We Are Not Dying," Answer Indigenous Peoples to...
Brazilian Nattan Pires: a New Star in the...
Bahia Port in Brazil Gets Green Light Despite...
President's Rise in the Polls Is Sinking the...
Brazil President Tells UN She Wants More Power...
Brazil's So-called Free Electoral Ad Time Costs Taxpayers...
Former Political Prisoners in Brazil Visit Place Where...
Brazil Presidential Candidate Marina Silva Vows to Promote...
Fear Campaign in Brazil Hurts Marina and Helps...
Rio Celebrates Car-Free Day Promoting Bike Riding
Brazil Takes to the Streets in Defense of...

 

Finance Minister Says Brazil Has Been Crippled by Rich Countries and Lack of Credit

Brazil's Guido MantegaAccording to Brazilian Finance minister Guido Mantega, Brazil's economy is walking with "two crippled legs."  He puts the blame on the effects of the international slowdown with different rates of recovery, and the lack of credit to prop consumer spending.

"The low growth of the global economy, particularly in developed countries has become an adverse wind for the performance of the (Brazilian) economy, as well as a higher rate of delinquency, which has made banks more cautious about new loans and thus limiting domestic demand," said Mantega during a meeting with industry barons in São Paulo.

"This means the Brazilian economy is walking on two crippled legs: on the one side contained and scarce consumption credit, and on the other the international crisis which is stealing us of growth chances."

But the minister also pointed out that the delinquency rate was down and there are signals of global recovery, which together should help the Brazilian economy to retake solid growth.

At the meeting the minister told the audience that the subsidized interest rate program to prop investment will continue in 2014 but at higher rates, since the Treasury needs to support a balanced budget and the promotional rates are below market level.

Mantega added that the variation will have the purpose of accompanying the increase of the basic Selic rate, but rates will still be lower. Loans for the purchase of trucks, buses and machinery will increase from 4% to 6%; innovation investment from 3.5% to 4% and financing exports from 5.5% to 8%.

He also announced that tax revenue in November was above 110 billion reais (US$ 43 billion), the highest for any month in the year, mainly because of a plan with incentives to collect pending fiscal debts.

The minister also replicated to criticism about the budget's primary surplus, recalling that the government had sacrificed revenue to stimulate the economy, help with cost reductions and support investments. (Primary surplus does not include debt payments as opposed to fiscal surplus).

The statement follows a similar position expressed by Central bank president Alexander Tombini addressing a congressional committee who underlined that: "the higher the fiscal surplus, so much better".

However the primary surplus set out for this year was 111 billion reais, but in October the accumulated surplus, including the Union, states and cities, stood at 51.2 billion reais, which means 64 billion reais short of the annual target.

Less Stimulus

Brazil will raise interest rates on some state-subsidized credit lines in 2014 withdrawing part of the stimulus that helped boost investments but also hurt public finances this year.

Interest rates on loans for the purchase of capital goods and trucks will climb to 6% per year, from 4%, while a special credit line for exports will climb to 8% from 5.5%.

The announcement was done by Finance minister Guido Mantega who also said the Brazilian economy was on the path to recovery.

The subsidized credit lines are part of a special program by state development bank BNDES to lower the cost of capital goods for industries and farms.

The program spurred investment and boosted a tentative economic rebound in the first half of this year, but also alarmed ratings agencies by lifting Brazil's gross debt.

Brazil's benchmark lending rate is currently at 10% after six consecutive increases this year.

Mantega had already announced that the credit line program would be extended into 2014 with some adjustments, but carmakers and machinery builders had been asking for further details to carry on with their investment plans for next year.

Brazil is facing presidential elections next October and president Dilma Rousseff is expected to bid for re-election boosted by favorable opinion polls, despite the June/July rioting and protests against political corruption and the poor quality of public services.

As he announced the changes, Mantega said Brazil's economy is on a path of gradual recovery that should continue in 2014 and the government is committed to strong fiscal results this year and next.

Mantega has previously forecast average growth of 4% per year over the next decade, a rate Brazil has not managed once under President Dilma Rousseff. In the third quarter, the Brazilian economy contracted for the first time since 2009.

Mercopress

Who's Online

We have 6424 guests and no members online

Statistics

Users
2
Articles
17073
Articles View Hits
118671986

Ad Link I

----------

Check dhgate.com for Brazilian Hair Extensions

----------

EssayDue.net - professional writing help

----------

Visit Ibuytermpapers.com to find expert academic writing tips

----------

Choosing brazilian products online at Milanoo.com

----------

DinoDirect

----------

Get free MajorElectrico writing tips for editing your academic papers.

----------

Join my student groups to get access to free writing templates and samples.

----------

Finding brazilian products from Milanoo Fashion

----------

cheap cocktail dresses

----------

Brazilian Male Enhancement Review at Breastsenlargementreview.com

----------

Brazilian Breasts Enlargement Cream

----------

Brazilian Top Breast Enlargement Reviews

----------

Brazilian Male Enhancement Pills at Breastsenlargementguide.com

----------

bruidsmeisjes jurken

----------

vestidos de noche

----------

ballkleider

----------

Cheap Prom Dresses

----------

Churrasco Equipment and Brazilian Meat Skewers

----------

Vestidos Noiva em Weddingmart.pt

----------

Australia Fashion Online Outlet store

----------

Robe de cocktail

----------

Our good partner Everbuying.com provides wide selections of products at best price for worldwide free shipping.

----------

Cheap Dre Beats

----------

Buy Cheap Nike Mercurial Soccer Cleats from MercurialCity now!

----------

Shopping Reviews

----------

----------

robe de cocktail

----------

Cheap Wedding Dresses

----------

bruidsjurken

----------

Find Me Handbags

----------

Wholesale Handbags Blog

----------

Submit Articles to Google Website List

----------

Brazilian Eyelash Treatment at Search Wholesale Handbags

----------

Brazilian Tested Lash Growth Serum at Wholesale Handbags Purse

----------

Chinese Wholesale Handbags

----------

Vestidos Noiva em Weddingmart.pt

----------

USA Wholesale Handbags

----------

Brazilian Eyelash Enhancer at Find Wholesale Handbags

----------

Soccer shirt

----------

The best mother of the bride dresses at TidebuyBridal.com

----------

Cheap human hair wigs at ishowigs.com

----------

cheap prom dresses at JDdresses.com

----------

Special Occasion Dresses

----------

Churrasco Catering and Churrasco Skewers

----------

brautjungfernkleider

----------

Australia Fashion online Outlet

----------

read more about Writing-Expert.com writing service

----------

Brazilian Cheap Handbags and Purses at Baginc

----------

Submit Website & Articles to Bing Web Directory

----------

Get Me Earrings

----------

Wholesale Clothing On Sammydress.com

----------

Brautkleider 2013

----------

Global Online shopping with free shipping at Handgiftbox

----------

Search