Uncertainty over Brazil’s presidential elections are buffeting the international financial markets and threatening the long-term viability of key reforms made under President Cardoso. Murillo de Aragao argues that if the current front-runner, Luiz Inacio Lula da Silva, wins in October he must resist the temptation of adopting unorthodox policies or risk plunging the country in to serious crisis. Interventionist economic measures would threaten foreign investment, economic stability and fiscal performance.
Category: Brazil
Sovereign Report
Brazil Gets $11 Billion Boost The International Monetary Fund agreed in mid-June to lend Brazil $10 billion and the World Bank chipped in another $1 billion to help the country […]
Time to Rebuild the Balance Sheet
After several years of sinking billions of dollars into government-mandated expansion programs, Brazil’s phone companies are finally ready to start increasing revenues and reducing debt.
Selling Well When Things Are Low
Despite Argentina’s dire straits, the country’s largest brewer managed to get a pledge from its Brazilian competitor to buy it out at a future date and price.
The Real Risk in Brazil
Financial markets are beginning to panic because Luiz Inácio Lula da Silva, the veteran candidate of the Workers Party, might win Brazil’s October presidential elections. In fact, the markets and […]
Ending the Consumer Credit Drought
For years, personal credit in Mexico and Brazil was outrageously expensive and near impossible to obtain. Declining interest and inflation rates are changing that. Non-banks are lending where traditional banks fear to tread.
How to Live with Risk and Volatility
A culture of risk management is taking hold in Latin America, particularly in Brazil and Mexico, where the products offered and their use are increasingly like those in developed markets.
Sovereign Report
Brazil Pays Up International investors responded tepidly at first to Brazil’s latest $1 billion eight-year global bond in April, led by bookrunners JP Morgan Securities and Morgan Stanley. Brazilian authorities […]
Soverign Report
Brazil Floats Dollar and Euro Issues Shortly after Moody’s Investors Service upgraded Brazil’s foreign currency rating outlook to positive from stable in March, the country issued $1.25 billion-worth of six-year […]
An Aversion to Equity Finance
Brazil’s equity market looks like it is in terminal decline. Trading volume of $25.8 billion last year is one-fifth of the volume in 1997. Delistings have outpaced IPOs for years. […]
