Tag Archives: Brazil

Brazil

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Rates high, deficit up, state sponsored lending that’s functionally a fiscal transfer more than making up for the drop in private sector lending.

Looks good!

Brazil:

Rates: Currently at 8.75%. Down from cycle high of 13.75% in January 2009.

Deficit: Currently at 3.4% of GDP. Largest since December 2006.

Brazilian Development Bank Lending has been instrumental in increasing credit.

In May 2009, the government also lowered to a record 6 percent the long-term interest rate charged by the BNDES state development bank for lending that, with private credit tight, it plans to expand 30 percent to 120 billion reais ($70 bln) this year.

Total domestic credit has grown 21% y/y as of July

Private sector bank lending has fallen 11% y/y

Public sector bank lending has jumped 40% y/y.

Foreign Direct Investment fell off sharply in 2009 and should return roughly to 2007 levels in 2010.


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Brazil Lula Vetoes Spending Limits for 2010 Budget, Estado Says

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Brazil seems to be catching on?

Brazil Lula Vetoes Spending Limits for 2010 Budget, Estado Says

August 14 (Bloomberg) — Brazil’s President Luiz Inacio Lula da Silva vetoed 20 items in the guidelines for next year’s budget that sought to curtail government spending on public
works, O Estado de S. Paulo said.

Lula also vetoed a measure that would have limited the government’s ability to increase investment under its so-called Growth Acceleration Program, which is comprised of infrastructure spending on ports, roads and energy projects, the Sao Paulo-based newspaper reported, citing the official gazette.


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U.S. Federal Reserve Extends Swap Line with Brazil Central Bank

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Wonder if they’ve used it?

In my humble opinion lending them $30 billion unsecured is a high risk proposition.

U.S. Federal Reserve Extends Swap Line With Brazil Central Bank

June 25 (Bloomberg) — Brazil’s central bank said today it
has extended an agreement to access up to $30 billion from the
U.S. Federal Reserve as part of a coordinated international
effort to shore up shaky financial markets.


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Brazil Discovery May Contain 8 Billion Barrels of Oil

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About 90 days of world consumption.

Exxon’s Brazil Discovery May Contain 8 Billion Barrels of Oil

by Joe Carroll

Mar 13 (Bloomberg) — Exxon Mobil Corp.’s oil discovery off the coast of Brazil may hold enough crude to rival the nearby Tupi prospect as the Western Hemisphere’s largest find in three decades.


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AFP: Burning up more food for fuel

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The monetary system will burn up the world’s food supply for fuel until the marginal individual about to starve to death has enough political influence to stop the process.

I’m pretty sure that’s not the millionth one to die of starvation. And probably not the ten millionth.

As more and more acreage goes to biofuels, expect the real price of food to continue to rise.

Lula and Indonesian president pledge biofuel cooperation

by Zulhefi

(AFP) Brazilian President Luiz Inacio Lula da Silva and his Indonesian counterpart pledged cooperation on biofuels during talks here Saturday in a bid to take advantage of surging oil prices.

Lula and President Susilo Bambang Yudhoyono signed off on an agreement to share knowledge on biofuel technology after meeting at Jakarta’s presidential palace.

The Brazilian leader called spiralling global commodity prices a “great opportunity” for developing countries such as Indonesia and Brazil, both of which are major producers of biofuel.

“The developing countries that have the characteristics that Indonesia and Brazil have should not analyse this crisis as only a problem. We have to see this moment as a great opportunity,” Lula said.

“We have land, we have sunlight, we have water resources, we have technology and, thanks to God, the poor of the world have started to eat more, three meals a day, so they will demand more food production.”

The two leaders signed memoranda of understanding that would see the countries exchange experts and students to share knowledge on biofuels. Yudhoyono will also make an official visit to Brazil in November.

“In the energy sector, both countries are cooperating in the field of alternative energy. Brazil has succeeded in developing bio-ethanol and Indonesia can learn from Brazil to develop bio-ethanol,” Yudhoyono said.


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