Category: Brazil

to join discussions at Brazil – The Way Forward, The 3rd Brazil Investment Forum in Rio de Janeiro, 31 Aug – 1 Sep 2005. Apply for your invitation today at www.latinfinance.com/brazil

Brazil, the developing world´s largest debtor, exchanged $4.4 billion worth of its outstanding 8 percent bonds due 2014, known as C-bonds, for new securities carrying the same coupon and due in 2018. Credit Suisse and JPMorgan Chase managed the swap. The move is part of an effort by President Luiz Inacio Lula da Silva’s government to reduce financing costs by taking off the market restructured debt that became the most-traded emerging market security for much of the past decade. Brazilian bonds are rated B1 by Moody´s, four levels below investment grade.

Brazilian President Luiz Inacio Lula da Silva issued a decree limiting the number of federal jobs held by political appointees to 6,900 from 21,200 as congress probes allegations of corruption in his government. The 14,300 affected posts will be filled from the four highest ranks of the civil service. To become law, congress must approve the decree within the next six months. In an emotional speech Friday Lula defended his administration and refused to “bow his head” to the country´s elites, which he claims are threatening his government.

Unemployment in Brazil’s six largest metropolitan areas fell to 9.4 percent in June, the lowest level since the government began keeping track of the indicator in October 2001. Growth in Brazil is expected to slow to 3 percent this year from 4.9 percent in 2004, according to a July 15 central bank’s weekly survey of economic forecasts. On Wednesday Brazil´s central bank decided to leave its benchmark interest rate at 19.75 percent.

to join discussions at Brazil – The Way Forward, The 3rd Brazil Investment Forum in Rio de Janeiro, 31 Aug – 1 Sep 2005. Apply for your invitation today at www.latinfinance.com/brazil

Brazil’s congress is investigating whether more than $12 million of withdrawals from an advertising company’s bank account were used by President Luiz Inacio Lula da Silva’s Workers´ party to bribe lawmakers. The panel asked for documents from Belo Horizonte-based Banco Rural and Brasilia-based Banco do Brasil as part of the probe. The Workers’ Party has denied the allegations and pledged to cooperate with the investigation.

JDarby Overseas Investments, the emerging market investment unit of Franklin Resources, says it will boost investments in Brazil by more then two-thirds in the next two years. Darby, which already has $145 million invested in Brazil, will spend another $100 million to acquire companies in the country. California-based Franklin Resources has more than $425 billion in assets.

to join discussions at Brazil – The Way Forward, The 3rd Brazil Investment Forum in Rio de Janeiro, 31 Aug – 1 Sep 2005. Apply for your invitation today at www.latinfinance.com/brazil

Brazil’s ruling Workers’ Party announced it won’t repay loans that former treasurer Delubio Soares obtained through a state contractor. The party’s national board decided against honoring loans totaling as much as $17 million that Soares obtained from Banco Rural and Banco de Minas Gerais. Soares failed to list the loans, obtained in 2003 and 2004, in the party’s financial statements and should pay them off himself, according to party president Tarso Genro said.

to join discussions at Brazil – The Way Forward, The 3rd Brazil Investment Forum in Rio de Janeiro, 31 Aug – 1 Sep 2005. Apply for your invitation today at www.latinfinance.com/brazil