Awash in Dollars, Brazil Buys Back US$ 2.3 Bi in Foreign Debt Bonds

    The head of Brazil’s Secretariat of the National Treasury, Joaquim Levy, reports that the government has been buying back foreign debt bonds since January. Levy says that US$ 2.3 billion of the country’s reserves, totaling US$ 57 billion, have been used.

    The government’s objective is to reduce its short- and mid-term debt, so it has been buying bonds that are due before 2010. Those bonds can be bought back up to December 2006.

    Levy said that with a favorable balance of payments, three years of consecutive trade surpluses and a sound economy, the government was now moving to reduce the country’s debt and modify the debt profile.

    "This is a good moment because we have never had so many dollars," he said. Levy added that the goal was to maintain fiscal discipline in order to achieve sustained growth and more investments.



    • Show Comments (3)

    • Guest

      no clue
      for the first guy, there is a huge difference between foreign investment and loans…I would suggest you not make comments about things you don’t understand.

      for the second guy, please explain the new debts at the higher interest rates…i have a suspicion you are confused as to what the government is doing

    • Guest

      even more stupid….
      …to buy back bonds that paid 7 % interest rates (your current US$ borrowing rate) and at the same time issuing new debts in local currency paying rates of 17 to 18 % !

      Where is the logic in your illogism ?????

      You just end up paying 10 % more interests….per year !!!!!!

      Great financial experts in the Brazilian government.
      The financial world is laughing even applauding, and suggest you to do even more similar buy back !

      Guess why ???????????????????????????????????

      Hi hi ! Even an uneducated citizen would NOT do this !


    • Guest

      a joke……
      …because why then you wish to have more
      external financing if you prepay what is not owed now ????????

      Curious how contradictions abound on everything the brazilian government is saying, asking and doing !

    Your email address will not be published.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.


    You May Also Like

    If Sí£o Paulo, Brazil, Were a Country, It Would Be Number 30

    The state of São Paulo, in Brazil, will have, on July 30, 40 million ...

    Brazil: Lula’s Star Still Got Some Shine Left

    The World Social Forum (WSF) in Caracas ended its first day with a protest ...

    A Brazuca in Sweden

    We can start a new friendship in five minutes. Of course, we Brazilians have ...

    Pomp, Circumstance and Lots of Deals for Brazil’s Lula in London

    Brazilian President Luiz Inácio Lula da Silva received a lavish welcome from Queen Elizabeth ...

    Drugstore in Brazil

    Brazil Forbids Sale of Convenience Goods in Pharmacies, But Rule Is Ignored

    Starting this Thursday, February 18, new rules from Brazil’s National Health Surveillance Agency (Anvisa) ...

    Rural Worker Gets a Day at the Doctor in Brazil

    Pesticide poisoning, pain, and excessive exposure to the sun, which can cause skin cancer, ...

    Brazil currency, the real

    In Effort to Curb the Real Brazil Taxes ADR

    The Brazilian government has just taken another measure aimed at containing the appreciation of ...

    Public worker

    Opposition Calls Electioneering Brazil’s Creation of 110,000 New Federal Jobs

    Since 2003 when he was inaugurated Brazilian president Luiz Inácio Lula da Silva has ...

    Brazilian crowd

    Blackness’s Fear and Stigma Make Brazil a 6% Black Country

    I would now like to turn my attention to the ever popular argument concerning ...

    Brazil and Canada Sign Audiovisual Accord

    The Audiovisual Technical Center of the Brazilian Ministry of Culture and Canada’s National Film ...