Despite Finance Ministry’s efforts to clean up public accounts and reduce fiscal risk in the future, the strategy for fiscal adjustment, as with the spending cap, has been gradual. As a consequence, one could not discard the risk of creeping insolvency, which could threaten the recently secured economic stability.
Although the pause in the cuts has come ahead of expectations, the basic interest rate hit an unprecedented level and, this time, it is here to stay. Even if some part of the monetary loosening is temporary, likely to revert when inflation is converging to its goal, there is a good chance of the Selic rate not coming back up to two digits. A key condition for that is the approval of Social Security reform that fends off the risks of public debt insolvency.
With consumer confidence once again on the rise in Brazil, Daniel Levy, CFO of Arezzo & Co. is optimistic about the company’s fortunes as the shoemaker looks to expand its footprint both within the country and abroad. We speak with Levy about the funding team’s core objectives and the company’s expansion efforts.
Brazil is still a teenager when it comes to the functioning of democratic institutions: a country that seeks a path to civility, but not without stumbling first.
Latin American miner Nexa Resources – which recently rebranded from Votorantim Metais – has in the past year completed its dual stock exchange listing, weathered a period of low commodity prices and mining sector strikes in Latin America, and maintained strong fundamentals to step confidently into the new financial year. We speak with Mario Bertoncini, the company’s Senior VP and CFO, about its prospects in 2018.
Carlos Kawall, the lead economist at one of Brazil’s most prominent banks, talks about the improving macro outlook for the country, burdensome tax and labour laws and the dark shadow of looming presidential elections.
We are in uncharted waters regarding the level of basic interest rate, continuing a series of cuts that is the longest in history. It is possible, however, to foresee even more reductions of the Selic, despite the various uncertainties that the Central Bank faces.
The federal public security intervention in Rio de Janeiro is one more example of the political perspicacity of the government leaders. In one fell swoop they managed to remove the monopoly on the public safety agenda of an important competitor, give a sign of strength to unfaithful allies, and put the opposition in the uncomfortable position of criticizing a measure with popular appeal.
The issuers, borrowers and mediators of the most innovative and outstanding debt capital market deals on the continent to be lauded at the prestigious awards ceremony. Winners: Latin America Deals of the Year Awards 2018
- HSBC: If Sustainable Finance is to Really Work, Mainstreaming Needs to be the Priority in 2018
- Brazil: Reckoning with public debt and reshuffling responsibilities
- Brazil: Why 2018 is Looking Better for the Economy
- Brazil: There’s No National Saviour
- Latin America Credit Markets Brief: 26 October – 9 November
15 Jun 2018