Brazil’s Debt to Lower to 55% of GDP

Brazil’s head of the Secretariat of the National Treasury, Joaquim Levy, says that at the moment the Brazilian government does not plan any more bond issues on foreign money markets this year.

Levy says the target of raising US$ 6 billion for the year remains in place.

With regard to the size of public debt, Levy reports that it is expected to fall for the second consecutive year.

“I think that this year it should come down more than two percentage points to around 55% of GDP,” he declared, explaining that as it comes down it gets easier to continue the downward tendency.

“It is a kind of snowball that will get bigger as we continue to pursue our present reduction policy,” he said.

Levy said the administration is moving ahead on track with rigid fiscal responsibility policies.

“We are only spending within budgetary and fiscal limits,” he said, adding that achieving fiscal targets will not depend on raising more capital on international money markets.

“We have not issued anything linked to the dollar and probably will not do so in the future. As a result, dollar-linked debt has fallen from around 40% of total public debt to 14% and should drop further to 5% by the end of the year,” explained Levy.

A consequence of less dollar-linked debt is that the private sector is less exposed and more profitable, while the economy as a whole less vulnerable, he concluded.

Agência Brasil


  • Show Comments (0)

Your email address will not be published.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.


You May Also Like

Already in the US and Europe, Brazil’s Samello Wants More Room for Its Shoes

The Brazilian factory Samello, largest shoes manufacturer in the region of Franca, in the ...

China Overtakes US as Biggest Importer from Brazil. US Still Exports More

China, in 2009, for the first time the biggest importer of Brazilian goods, overtaking ...

Brazil Doubles Amazon Research Funds to US$ 57 Million

The Brazilian government plans to invest approximately US$ 57 million this year on scientific ...

Foreign Capital Will Soon Pay for Grinding a Quarter of Brazil’s Sugarcane

In three to five years foreigners will be grinding 25% of the Brazilian sugarcane. ...

Brazil’s Development Bank Has Loaned Close to US$ 50 Billion This Year, a Record

The BNDES, Brazil's National Bank for Economic and Social Development, announced that it disbursed ...

Brazilian Women Get New Lease in Life Planting Flowers

The life of 21 impoverished women from the interior of the northeastern Brazilian state ...

US$ 9 Bi: Foreigners Haven’t Bought Brazilian Shares Like That in 62 Years

Investment from overseas in shares negotiated in Brazil reached US$ 8.761 billion this month ...

Brazil: Heloí­sa Helena Becomes Serious Contender for Presidency

The big news from the latest DataFolha poll on Brazil’s October presidential election is ...

After Brazil Complaint Britain Decides to Take Back 1,000 Tons of Toxic Trash

Brazil has announced that it will lodge a formal complaint with the World Trade ...

Activists Urge Brazil to Stop Killing of Amazon Dolphins

Activists from the Friends of the Manatee Association (Ampa) have placed a 12-meter-tall inflatable ...