Brazil’s President Lula Signs Decree Creating Sovereign Fund

Brazil’s President Lula Signs Decree Creating Sovereign Fund

Dec. 29 (Bloomberg) -- Brazil’s President Luiz Inacio Lula da Silva signed a decree creating the country’s sovereign fund.

Brazil set the six-month London interbank offered rate, or Libor, as minimum return for the fund’s investments abroad, according to the decree published in the government’s official gazette today. The country set its long-term interest rate, or TJLP, as the minimum return for the fund’s investments in the local market.

Brazil’s sovereign fund will buy only investment grade assets rated by at least two agencies.
Last Updated: December 29, 2009 04:51 EST"