Brazil Gets a Permanent US$ 6.5 Sovereign Wealth Fund

    Brazil's Sovereign Fund

    Brazil's Sovereign Fund The Brazilian House of Representatives approved on Tuesday night legislation making an existing Sovereign Wealth Fund into a permanent fixture. The Lower House members voted 274-102 to approve a government bill making the fund permanent and approving an initial total for it of 14.2 billion Brazilian reais, approximately US$ 6.5 billion.

    The Sovereign Wealth Fund was created late last year by Brazilian President Luiz Inácio Lula da Silva by a temporary executive order. For the fund to become permanent it requires congressional approval.

    Following Tuesday's Chamber of Deputies vote, the bill will move on to the Brazilian Senate, where approval is also expected.

    The Sovereign Wealth Fund is equal to approximately 0.5% of Brazil's GDP. The idea behind it is to create and maintain the fund from public revenues during periods of economic growth. Money locked up in the fund can then be spent during periods of economic downturn.

    Currently, Brazil is facing the prospect of zero or negative economic growth in 2009 after posting an expansion of 5.1% in 2008.

    So far, the administration of President Lula has not indicated any intention of unlocking the Sovereign Wealth Fund for spending this year. However, many economists and business leaders have said the government should spend some of the fund's money in order to stimulate Brazil's economy.

    Mercopress

    Tags:

    • Show Comments (0)

    Your email address will not be published. Required fields are marked *

    comment *

    • name *

    • email *

    • website *

    This site uses Akismet to reduce spam. Learn how your comment data is processed.

    Ads

    You May Also Like

    Democrats Have a Chance to Reshape Bush’s Flawed Latin American Policy

    Is there, or will there be, a revitalized Democratic Latin American policy as distinct ...

    Death Threats Are Part of Daily Life for Brazil’s Human Rights Activists

    The UN rapporteur for human rights, Hina Jilani, recently visited  Brazil to become more ...

    Lula Gives Push to Biodiesel Inaugurating Plant in Brazil’s Northeast

    Brazilian President Luiz Inácio Lula da Silva will inaugurate today Brazil’s first biodiesel plant ...

    Lula Shining Abroad

    The Brazilian Gross National Product growth was negative in the first three months of ...

    Brazil Hoping the World Will Adopt UN Guidelines on Diet

    The rapporteur for the Brazilian Platform of Human Economic, Social, and Cultural Rights (Dhesco ...

    Brazilian Indians Have no Voice on Matters Concerning Themselves

    Fourteen indigenous lands in Brazil had their bounds officially confirmed on October 27, totaling ...

    Brazil Teaches Nigeria How to Add Alcohol to Its Fuel

    Brazil’s state-run oil giant, Petrobras, is going to provide technical and commercial support for ...

    Lula Down But Certainly Not Out

    The ongoing scandal which has dominated the news since May has undoubtedly hit the ...

    Cover of Brazilian magazine Veja with Renan Calheiros

    Senate Spits in the Face of the Brazilian People

    Brazil’s senators showed their contempt for the people who elected them by spitting in ...

    Brazil: Lula’s Making Eyes at China

    Among the agreements Brazil President Lula hopes to sign in China is one in ...