Category: Brazil

The chief executive of Varig, Brazil’s largest airline, called on the government to come up with enough cash to keep it afloat as it tries to restructure US$1.9 billion in debt. Marcelo Bottini said the company does not have enough cash to pay for the fuel and airport fees it needs to stay in the air. Its former logistics unit, VarigLog, offered to buy the company for US$46 million this week. Creditors, which include General Electric, Petrobras and Boeing, are threatening to ground aircraft unless the company pays them.

Brazilian authorities released Peter Schaffner, a Credit Suisse Group employee, from jail April 1, after holding him for questioning on money laundering and tax evasion charges since March 22. Police arrested Schaffner as he was boarding a plane for Zurich and have seized his passport. A day before the arrest, police raided the bank’s offices and the homes of four executive, confiscating documents and computers. Credit Suisse said it is cooperating with the investigation.

Brazil’s Luiz Inacio Lula da Silva replaced eight members of his cabinet who stepped down to qualify as candidates for this October’s elections. Brazil will hold presidential, congressional and senatorial votes this year, as well as for state governors. Jacques Wagner stepped down as congressional liaison and is replaced by Tarso Genro, a former president of Lula’s Workers’ Party. Lula will depend heavily on Genro to get his budget passed this year and help fight back against long-running corruption allegations. Defence Minister Waldir Pires replaces Jose Alencar as vice president in the other major move.