Brazil Sovereign Tweaks Borrowing Plan

Brazil’s treasury has revised its 2008 borrowing plan, adjusting the caps on total debt stock as well as the proportions of fixed and floating-rate debt. Fixed-rate debt will be targeted at 29%-32%, down from 35%-40%, while floating-rate will shift up to 31%-34%, from 25%-30%. Inflation linked debt will meanwhile stay the same at 25%-29%. As of end-2007, Brazil had 35.1% in fixed rate, 24.1% inflation linked and 30.7% floating rate debt, the treasury says. The total debt stock limit has been cut to BRL1.36trn-BRL1.42trn, down from BRL1.48trn-BRL1.54trn, and versus BRL1.33trn at the end of 2007. It moved the targets due to the strengthening of Brazilian economic indicators amid increasing international instability, it said.