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.

ABr

Tags:

Ads

You May Also Like

Brazilian and Colombian President Talk Business and Politics

Following lunch with Brazilian President Luiz Inácio Lula da Silva, the president elect of ...

Handicapped Get a Place Under the Sun in Brazil

Representatives of 21 Iberian-American countries will meet in Rio de Janeiro between November 7 ...

Brazil’s Agro Research Czar’s Dream: Attune Technology and Environment

Pedro Antonio Arraes Pereira, the Brazilian researcher and engineer  who assumed the presidency of ...

Brazil’s Lula and Bush Should End Their War

Brazilian President Luiz Inácio Lula da Silva is the most traveled of all Brazilian ...

Brazilian Congress Creates Committee to Deal with Indian Issues

During a joint session held last week, Brazil’s National Congress approved the creation of ...

GM Is Turning Brazil into Biofuel Car World Leader

General Motors, in spite of its misfortune or long standing mismanagement in the US, ...

Final Numbers In: Brazil’s Economy Grew Mere 2.3% in 2005

The Brazilian economy ended up growing 2.3% in 2005 in comparison with 2004, when ...

Brazil Embraer's Phenom 300

Brazil’s Embraer Reinforces Sales Team for US, Canada and Mexico

Brazilian aircraft manufacturer Embraer has increased its North America's Executive Jets sales team by ...

Dramatic Jump in Brazil’s Dairy Exports

Through August of this year, Brazil exported more dairy products than it did in ...

CFIF Wants U.S. to Stop Brazil from ‘Stealing US Patents’

While the U.S. Trade Representative’s Office this week announced a new initiative to end ...