Brazil Starts Talks on Converting Its US$ 202 Billion Foreign Debt

In July Brazil will begin negotiations with creditor nations to convert part of its foreign debt into investments in education. Brazilian Minister of Education, Tarso Genro, says the talks will probably extend into next year.

Brazil will be following in the footsteps of Argentina which was able to spend some 68 million euros (US$ 100 million) in foreign debt payable to Spain on education. The deal was negotiated with the Spanish government.


Genro says “There is no doubt we can exchange debt for investments in education. It all depends on the negotiations.”


He points out that there are various conversion mechanisms that bilateral talks can achieve, which will make it possible to exchange part of Brazil’s US$ 202 billion foreign debt for investment in education.


Bilateral talks with Spain begin on July 11, when Genro will present two projects. One is for the creation of bilingual classes in regions along Brazil’s borders with Spanish-speaking nations.


The other is for the construction of 800 schools in rural areas at a cost of some US$ 25 million that would ideally be deducted from Brazil’s foreign debt with Spain.


Brazil’s total debt with the Club of Paris, consisting of 13 countries, of which Spain is one, is US$ 3.5 billion.


The deputy executive secretary at the Ministry of Education, Jairo Jorge, says that following the talks with Spain, Brazil will seek similar negotiations with other Club of Paris members, such as Canada, Switzerland, Sweden, France and Germany.


ABr – www.radiobras.gov.br

Tags:

  • Show Comments (2)

  • Guest

    Brazilian Real Value against the US doll
    Any predictions on what this restructuring of debt will do to the value of the Real against he US dollar ?

  • Guest

    Brazilian Real Value against the US doll
    Any predictions on what this restructuring of debt will do to the value of the Real against he US dollar ?

Your email address will not be published. Required fields are marked *

comment *

  • name *

  • email *

  • website *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Ads

You May Also Like

Brazilian Northeast's mother and kids

Brazil’s Birthrate Falls from 6.2 to 2.3 Kids Per Woman

In the last 60 years, Brazilians have increased their life expectancy in almost 30 ...

President Dilma Can Get a Place in History by Having Rich and Poor Kids in the Best Schools

In her first post-election speech, President-elect Dilma Rousseff made a commitment to eradicating misery. ...

Songs That Won’t Die

While bossa nova is used as a watershed, A Canção no Tempo (The Song ...

Brazil Anticipating US$ 35 Billion in Foreign Direct Investment This Year

According to the projection of the Central Bank of Brazil, the country should receive ...

In Brazil the Price of Eternal Youth Often Is Unbearable Boredom

“The Brazil of 1920 was a landscape of old men,” wrote Nelson Rodrigues in ...

Brazil Ships 13,000 Live Cattle to Lebanon

Another 13,000 live cattle were embarked, Wednesday, November 2, from the port of Rio ...

Brazil Joins US and China in Contagious Disease Network

Representatives of Public Health Institutes in 40 countries, including Brazil, signed an agreement Tuesday, January ...

Too Many Problems: NGOs Refuse to Support Rio +20’s Final Document

Speaking in name of some 1,000 NGOs, at the first plenary session of the ...

Minister Forecasts 11% Boost in Brazilian Exports with a Little Help from World Cup

Brazil’s Minister of Development, Industry and Foreign Trade, Luiz Fernando Furlan, has announced his ...