Brazil Names Kawall to Head Debt Sales

Brazil’s new Finance Minister Guido Mantega named Carlos Kawall treasury secretary to oversee government debt sales as he sought to calm investors by unveiling part of his new team. Bernard Appy became deputy finance minister, a post he held from 2003-2005. Financial markets are concerned the new minister will boost spending and provoke inflation ahead of coming elections and the new appointments may soothe these worries. Mantega also promised to keep spending in check and aim for the same fiscal targets as his predecessor. Former Finance Minister Antonio Palocci and his top officials resigned this week because of a bribery and corruption scandal. Mantega got another boost today when the central bank lowered its 2006 inflation forecast to 3.7 percent compared with a target for the year of 4.5 percent.