Category: 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.

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 offered to exchange as much as $5.6 billion of bonds due in 2014 for new securities in an effort to reduce the country’s debt financing costs. Brazil is taking off the market the so-called C-bond, the most-traded developing nation security for much of the past decade. The country´s finance ministry says final terms of the transaction will be announced this Friday. The C-bond has become less traded in recent years and has lost its place to another Brazilian bond, the government’s 11 percent bond due 2040, as the benchmark security for emerging-market debt.

Brazilian economists expect the country´s inflation rate will fall more than previously forecast due to a stronger currency, higher interest rates and reduced consumer demand. The annual inflation rate will fall to 5.67 percent by yearend, lower than last week’s forecast of 5.72 percent and down from a rate of 7.3 percent in June, according to a central bank survey of about 100 economists. The new forecast marks the ninth straight week analysts have cut their inflation forecast. Brazil´s central bank has aggressively raised its benchmark lending rate since last September.

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 asked the World Trade Organization for permission to block $3 billion worth of US trademarks, patents, and financial and engineering services until the US ends illegal cotton subsidies to American farmers. WTO judges ruled in March that US cotton aid breeches commitments signed in 1994. If applied, the sanctions would be the first time any of the WTO’s 148 governments retaliated by targeting commercial services and property rights rather than increasing tariffs. The World Bank has calculated that US cotton subsidies, as well as support to Chinese and European growers, lowers world prices by as much as 15 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 central bank President Henrique Meirelles ordered two banks to hand over documents sought by lawmakers investigating government corruption. State-owned Banco do Brasil and privately-owned Banco Rural have until July 19 to provide the congressional investigation with tax and banking records for advertising executive Marcos Valerio Fernandes de Souza and some of his 18 companies. Valerio, whose companies have advertising contracts with state-controlled companies such as Banco do Brasil, denied in congressional testimony last week he helped the governing Workers’ Party pay bribes to lawmakers in exchange for votes in congress.

Financially troubled Brazilian airline Varig is in talks to sell its 49 percent stake in Uruguayan carrier Pluna to Venezuela’s Conviasa to boost cash flow and pay off debt. The airline, which filed for bankruptcy protection last month, owes creditors $3.8 billion and is currently preparing a recovery plan.

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