Brazil to Offer Credit Lines and Fiscal Incentives to Exporters

Made in BrazilBrazilian Finance minister Guido Mantega in an interview with daily newspaper Folha de S. Paulo announced that Brazil is preparing a package of incentive but this time to promote exports which suffered significantly last year because of the global slowdown.

The measures basically would extend fiscal benefits to the export companies and for this the concept of “exporter” has been redefined.

“Currently for a company to be considered ‘exporter’ and thus have access to benefits, it must sell overseas at least 60% of its production. We are going to lower this requisite to 40% thus helping to include more companies in the benefits,” said Mantega.

“We are interested in promoting credit lines for exports and fiscal incentives to benefit medium and small companies,” added Mantega since big corporations are more flexible in taking advantage of these measures.

Brazilian exports last year totaled US$ 153 billion, which represented a 21.8% contraction compared to 2008, and the first drop in a ten-year sustained export boom. Trade surplus reached US$ 25.3 billion (up 1.6%) which was the result of a strong contraction of imports, which added to US$ 127,6 billion, down 25%.

Meantime Central Bank president Henrique Meirelles anticipated that Brazil is likely to see around US$ 45 billion in foreign direct investment this year and faces a current-account deficit of US$ 50 billion.

With historically low interest rates and high investor demand for Brazilian assets, the economy has been walking the line between robust growth and heightened inflation.

After enacting a range of stimulus measures during the global economic crisis, Brazil has already started moving toward monetary tightening and last month statutory reserve requirements for banks were raised by two percentage points in a first step toward reducing “excess liquidity.”

Meirelles acknowledged that the move effects monetary policy but denied reserve requirements were being raised in place of higher interest rates.

With investor interest in Brazil still robust, Meirelles said that “strong flows of investment are expected,” even though “too much exuberance is not always good.” 

Mercopress

Tags:

You May Also Like

Brazil's Terena Indian Rogério Ferreira da Silva

Brazilian, Indian, Ph.D. in Agronomy

On February 22, Brazilian Rogério Ferreira da Silva presented his doctorate thesis in agronomy. ...

Brazil President’s Mandate Is Now in the Hands of the Senate

Brazil’s Chamber of Deputies approved the admissibility of President Dilma Rousseff’s impeachment request. With ...

Brazilian Coming to US for AIDS Treatment Deported at Airport

Last summer, North American Airlines employee and ESL teacher Apolo Marcos headed to the ...

Brazil’s Hunger Minister Says Country Is Winning Fight Against Absolute Poverty

According to Brazil’s Minister of Social Development and Hunger Combat (MDS), Patrus Ananias, the ...

Brazil Needs More Imports If It Wishes to Export More

The president of the Foreign Trade Studies Center Foundation (Funcex), Roberto Gianetti da Fonseca, ...

The Little Guys from Brazil Who Made Big in Furniture

Training of the businessmen and investments in production and in design. These are the ...

A Brazilian Company Dedicated to Green, Sustainable Products

The skate conceived by Rio de Janeiro-based company Fibra Design Sustentável is elegant, well-finished ...

Part of fallen Gol's Boeing 737 fuselage in Brazil's Amazon forest

Prosecutor Charges Brazilian as Main Culprit of Brazil’s Worst Air Accident

Brazilian federal prosecutor Tiago Lemos de Andrade thinks he knows who are responsible for  ...

Seven Brazilian Indians in Prison Since December for Protesting

On December 27, 2005, eight Indians were arrested in Chapecó, state of Santa Catarina, ...

Short story

She used to lie like hell. She would swear she was a virgin, she ...