Brazil’s Foreign Debt Shrinks, But It’s Still US$ 161 Billion

Brazil’s foreign debt in May was US$ 5.956 billion less than in March, according to an estimate published yesterday, June 21, by the Economic Department of the Central Bank (BC) in May’s report on the Foreign Sector.

The stock of debt at the end of May amounted to US$ 160.696 billion, excluding intercompany loans, which refer to the more than US$ 20.852 billion transferred by foreign-based multinational corporations to their Brazilian subsidiaries. In its accounts, the BC treats these transfers as direct investments in the productive sector.

According to the report, the reduction is partly the consequence of a bond repurchase operation in which the Brazilian government retired US$ 270 million in foreign debt. Another US$ 679 million represents the liquidation of debt owed to the Paris Club.

The document points out that it is also necessary to consider the inflow of US$ 1.155 billion in World Bank (IBRD) loans for public sector adjustment programs: US$ 500 million for the housing sector and US$ 655 million for fiscal reform.

The head of the BC’s Economic Department, Altamir Lopes, explained that medium and long-term foreign debt amounts to US$ 143.159 billion, while short-term debt, which must be repaid by private and government banks over the next 12 months, amounts to US$ 17.537 billion.

The BC report shows that, while the debt shrank, international reserves rose US$ 6.829 billion in comparison with the previous month’s balance. The stock of international reserves amounted to US$ 63.381 billion at the end of May, mainly in consequence of net domestic market purchases of US$ 4.359 billion.

Agência Brasil

Tags:

You May Also Like

In Brazil, Investigative Journalism May Mean Death Sentence for the Reporter

Brazil is booming.  Latin America’s largest and most populous nation recently surpassed the United ...

Brazilians Want to Know How Lula’s Son Went from Jobless to Millionaire in 4 Years

An investigation has been launched into the fortune of one of the Brazilian president’s ...

Brazil to Break AIDS Drugs Patents in 4 Months

In 2006, Brazil will begin to produce substances such as AZT, D4T, and 3TC, ...

Brazil Ready to Face a Bolivian Gas Shut-Off

Brazil’s Ministry of Mines and Energy and Petrobras informed, yesterday, that the supply of ...

Brazil President’s European Tour Gets Her Involved in Economy, World Cup and Brazilian Culture

The Brazilian president, Dilma Rousseff, used a free afternoon this last Sunday in Brussels, ...

Brazil’s Wheat Harvest Drops 13%. Blame It on the Rain.

This year’s national grain production in Brazil may have a reduction of approximately 5.5% ...

Amnesty Urges Coroner Probe on 2005 Killing of Brazilian in London’s Subway

The coroner's probe into the death of Brazilian electrician Jean Charles de Menezes, who ...

June 1995

CONTENTS: Cover story : What do Brazilian women want? (p.8) Gays on the mainstream ...

Brazil Ends Law Compelling Parties to Have Same Allies at Federal and Local Levels

Brazil’s House of Representatives approved, in a first vote, a proposed constitutional amendment that ...

Lula Defends Brazil’s Central Bank Interest Rates Policy

In a speech at Petrobras regional headquarters in the Greater ABC region of São ...