Brazil Uses Reserves to Redeem US$ 6.6 Bi in Brady Bonds

Brazil’s National Treasury announced that it will redeem US$ 6.64 billion in Brazilian foreign debt instruments prior to their expiration date.

The instruments are Brady bonds, named after the United States Secretary of the Treasury in 1989, Nicholas Brady, author of the plan including these bonds.

The Brady Plan offered a way for the US government to back new bond issues by Latin American governments – Brazil and Mexico, for example – that had imposed a moratorium on foreign debt payments.

The Brazilian government plans to redeem the "Bradies" by April 15. According to Brazil’s secretary of the Treasury, Joaquim Levy, the early redemption of the bonds will save the federal government US$ 365 million in interest expenses.

The funds that will be used to redeem the "Bradies" will be drawn from the country’s international reserves – an account in dollars in the Central Bank used to cover foreign obligations.

Brazil’s reserves currently stand at US$ 57.609 billion, according to a note from the Ministry of Finance.



  • 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Your email address will not be published.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

Brazil: Bankruptcy-Plagued Varig Hires US Firm Savvy on Distressed Airlines

Global professional services firm Alvarez & Marsal, which specializes in turnarounds and restructurings, announced ...

Brazil to Vote Against Iran Sanctions. Vote that Matters Though Will Come from Big 5

Iran’s president, Mahmoud Ahmadinejad, indirectly rebutted pressure by the international community on his country ...


Bahia has a new muse. Banda Eva sells one million CDs and projects Ivete ...

Brazil: Massacre Brings Hundreds of Federal Agents to Rio

Around 600 agents from the National Public Security Force will begin to operate in ...

Shock Treatment

Brazil needs a major and radical government change to be able avoid an economic ...

Hardly Working

There are between 16.5 million and 30 million Brazilians working in the informal economy, ...

I Had To Leave Brazil in Order To Appreciate Its Music Again

When I relocated to New York from Brazil, I must confess that I wasn’t ...

Brazil Wants the World to Chip In to a US$ 23 Billion Amazon Protection Fund

The President of Brazil, Luiz Inácio Lula da Silva, has called on developed countries ...

Jobs in Brazil Grow 0.73%. Most New Posts in Northeast.

Formal employment in Brazil increased 0.73% in September in relation to August. 189,458 new ...

Castro-Chavez Anti US Rhetoric Makes Argentina and Brazil Uneasy

President Kirchner left the Cordoba Mercosur summit early Friday night in what was rumored ...