Category: Brazil

Brazil’s financial system has been highly automated for more than a decade, but in April the country addressed remaining weaknesses in its payment infrastructure and now has global standards in place.

The Central Bank of Brazil recently changed the rules for how financial institutions report securities held as propietary assets or managed fiduciary funds. The change, while positive, has some immediate consequences for bank financial statements.

Argentina’s collapse has meant huge losses for foreign investors, particularly the Spanish, who spent richly to acquire market share in the 1990s. Growing instability in Brazil and elsewhere is adding to the pain.

Even if it hurts, Latin American companies recognize the need to look to the equity markets as a way to rebalance capital structures weighed dwon by debt and Brazil is leading the way. The challenge is to drum up investor interest.

Uncertainty over Brazil’s presidential elections are buffeting the international financial markets and threatening the long-term viability of key reforms made under President Cardoso. Murillo de Aragao argues that if the current front-runner, Luiz Inacio Lula da Silva, wins in October he must resist the temptation of adopting unorthodox policies or risk plunging the country in to serious crisis. Interventionist economic measures would threaten foreign investment, economic stability and fiscal performance.

Brazil Gets $11 Billion Boost The International Monetary Fund agreed in mid-June to lend Brazil $10 billion and the World Bank chipped in another $1 billion to help the country […]

After several years of sinking billions of dollars into government-mandated expansion programs, Brazil’s phone companies are finally ready to start increasing revenues and reducing debt.