Category: Brazil

US Treasury Secretary John Snow is travelling in Brazil and met with
President Luiz Inacio Lula da Silva and Finance Minister Antonio Palocci
Monday. This is the third visit of a Bush administration official to the
country since March and comes amid a corruption scandal that threatens to
cut into Lula´s popularity ahead of next year´s presidential election. Snow
declined to make direct comments about the scandal, saying it is a domestic
issue. Addressing generally the subject of corruption in an interview with
a Brazilian TV network last week, Snow said that it hurts democracy,
markets, investor confidence and economic growth.

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 Treasury Secretary Joaquim Levy said the country will refinance $9 billion of the $11.8 billion of international debt maturing in 2006 and 2007 as part of an effort to reduce the country´s foreign obligations. Brazil sold $6 billion of international bonds as part of its 2005 financing plan and Levy said the government may sell bonds later this year to pre-finance spending plans for 2006.

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

Brazilian low-cost airline Gol is to double its order for Boeing 737-800s to 60 aircraft and will increase its purchase options to 41. Gol´s revised order increases the size of its total order for Boeing aircraft to 101 from 63. Deliveries are scheduled to take place between 2006 and 2012. Gol – which is planning to establish a low-fare airline in Mexico – says it will use the new 737s for further route expansion in Brazil and South America.

Telemar, Brazil´s biggest telephone company, reported net income of $83 million in the second quarter, up 160 percent year-on-year. Chief Executive Ronaldo Iabrudi has more than doubled sales in the last five years by adding data, mobile and long-distance phone services to Telemar’s fixed-line telephone network.

Brazil´s government lowered its forecast for economic growth this year from 4.0 percent to 3.4 percent. Central bankers raised the benchmark lending rate nine times between last September and April and this month decided to leave it at a 21-month high of 19.75 percent to slow down inflation. The government also increased its year-end inflation forecast to 5.57 percent from 5.1 percent and raised its forecast for this year’s average benchmark interest rate to 19.15 percent from 18.87 percent.

The Brazilian congressional committee investigating alleged corruption at the state post office voted 19-1 to jail ad executive Marcos Valerio Fernandes de Souza to prevent him from destroying evidence. Lower house deputy Roberto Jefferson testified on June 14 that Valerio helped the ruling Workers’ Party bribe lawmakers to win their votes in congress and illegally funded campaigns for the ruling coalition and opposition parties. Former Workers´ Party treasurer Delubio Soares quit on July 5 after admitting he sought Valerio as a guarantor of the loans.

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

Uruguayan officials say the country will file a complaint with the World Trade Organization against US rice subsidies, following a similar case by Brazil against US cotton aid. Brazil has asked the WTO to authorize $3 billion in sanctions against the US after the trade arbiter backed a claim that cotton payments to American farmers are illegal because they breach commitments signed in 1994. Uruguay is the world’s seventh-largest rice exporter and shipped 750,000 metric tons of the grain in 2003 and 2004.