09/22/2024 – 21:03
Finance Minister Fernando Haddad said that the market “didn’t even wait” for explanations about the reduction in the frozen volume in the Brazilian budget, from R$15 billion to R$13.3 billion. A press conference is scheduled for tomorrow, the 23rd, to discuss the matter, but the data was released on Friday, the last day of the legal deadline for the government to send the Revenue and Expenditure Report for the 4th two-month period to the National Congress.
“The market didn’t even wait for Monday, for the interview that will be given. But when we open the data we only have good news, both on the revenue side and on the expenditure side,” Haddad told journalists in New York.
The release of resources triggered a series of criticisms among economists and financial market operators, who expected the government, on the contrary, to increase the volume of frozen resources.
Regarding the increase in interest rates in Brazil, the Finance Minister stated that he sees the movement impacting conversations with foreign investors in the US. In his view, the new cycle of monetary tightening in the country will be ‘temporary’ and rates should fall again as soon as ‘things get back on track’.
“In my opinion, the increase in interest rates in Brazil will be temporary and we will resume it soon, as soon as things are back on track, we will resume the sustainable trajectory of falling interest rates,” assessed the minister.
One more ‘step’
Haddad reaffirmed that he expects Brazil to advance another step in 2025 in its rating by credit rating agencies, in the quest to regain investment grade status.
The country is two levels away from regaining the seal of good payer from the three largest rating agencies in the world: Moody’s, S&P and Fitch Ratings.
“Year after year we are overcoming the steps that were lost. This year we had three good news stories, last year too, and next year we expect another step in the search for investment grade.”
Regarding the attraction of foreign resources, the Finance Minister stated that the first point is the return of growth in Brazil.
“Brazil had not grown for 10 years, producing public deficits. We will have the best result in 10 years, with the exception of the make-up that was done in 2022, which involved defaults and hasty and suspicious privatizations,” said Haddad.
In his view, the work that the Brazilian government has done has helped to generate confidence, especially among foreign entrepreneurs. “This investor has no party in Brazil other than the investment itself. He does not have an ideological alignment. He is aligned with the opportunities that Brazil offers,” he concluded.
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