The head of Brazil’s Secretariat of the National Treasury, Joaquim Levy, reports that the government has been buying back foreign debt bonds since January. Levy says that US$ 2.3 billion of the country’s reserves, totaling US$ 57 billion, have been used.
The government’s objective is to reduce its short- and mid-term debt, so it has been buying bonds that are due before 2010. Those bonds can be bought back up to December 2006.
Levy said that with a favorable balance of payments, three years of consecutive trade surpluses and a sound economy, the government was now moving to reduce the country’s debt and modify the debt profile.
"This is a good moment because we have never had so many dollars," he said. Levy added that the goal was to maintain fiscal discipline in order to achieve sustained growth and more investments.
ABr
Show Comments (3)
Guest
no clue
for the first guy, there is a huge difference between foreign investment and loans…I would suggest you not make comments about things you don’t understand.
for the second guy, please explain the new debts at the higher interest rates…i have a suspicion you are confused as to what the government is doing
Guest
even more stupid….
…to buy back bonds that paid 7 % interest rates (your current US$ borrowing rate) and at the same time issuing new debts in local currency paying rates of 17 to 18 % !
Where is the logic in your illogism ?????
You just end up paying 10 % more interests….per year !!!!!!
Great financial experts in the Brazilian government.
The financial world is laughing even applauding, and suggest you to do even more similar buy back !
Guess why ???????????????????????????????????
Hi hi ! Even an uneducated citizen would NOT do this !
cheers
Guest
a joke……
…because why then you wish to have more
external financing if you prepay what is not owed now ????????
Curious how contradictions abound on everything the brazilian government is saying, asking and doing !