National Treasury Secretary Ana Paula Vescovi says that recovering Brazil's investment grade rating is possible and viable as soon as 2018. The secretary was presenting the Annual Financing Plan (PAF) for 2017 and admitted the fiscal scenario is still adverse for this year despite improvements since the change of government last May.
Post-fixed securities (LFT, linked to base rate Selic) are expected to make up 29% to 33% of the federal debt this year, from 28.2% in 2016 – the highest since 2011 – as the Treasury seeks the best balance between cost and risk, Ms. Vescovi says. The government doesn't rule out having a bigger share of the debt in LFTs than in pre-fixed securities, with longer terms, whose share is forecast to reach 32% to 36% this year. Brazil's federal debt rose 11% last year to R$3.1 trillion and is expected to fluctuate in a range from R$3.45 trillion, to R$3.65 trillion. The debt's share held by foreigners also fell for the first time since 2007, to 14.3% in 2016 from 18.8% in 2015
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About Me
- Waldemar Jezler
- For over 30 years, Brazilian-American investment banker Waldemar Jezler has worked in the finance sector. Jezler earned his Bachelor's degree in Civil Engineering from the University of São Paulo in Brazil and then went on to attend Harvard Business School for his MBA. While at Harvard, Jezler was highly involved in extracurricular activities, including a term as President of the Ibero American Club.