Brazil To Buy Back Brady Bonds

Brazil is to use its rising foreign currency reserves to buy back $6.6 billion outstanding of Brady bonds, representing 8% of the country’s foreign-currency denominated debt. The bonds, created in the 1990s as part of the Brady Plan debt restructuring program, have a call option to be repurchased at par value this April. Brazil’s foreign currency reserves have been boosted over the past year by rising exports and increased foreign investment into the country.