Category: Brazil

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.

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

Jose Dirceu, Brazil’s former cabinet chief, knew state contractor Marcos Valerio Fernandes de Souza made loans to the governing Workers’ Party, Valerio´s wife Renilda Santiago said in congressional testimony. Valerio told her Dirceu had meetings with executives from Banco Rural and Banco de Minas Gerais last year to find ways to pay off the loans. She went on to say that Valerio never mentioned any transaction aimed at paying the expenses of President Luiz Inacio Lula da Silva or any of his relatives, a connection that some opposition lawmakers have sought to establish.

Gol, Brazil’s largest airline, is doubling its order for Boeing 737-800 jets as business booms. Low-cost carrier Gol now says it will buy 60 aircraft as part of a plan to push its market share to 30% from 26%. The company also increased its options on new planes to 41 from 33 for a total potential purchase of 101 aircraft.

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

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.