JPMorgan looks to Brazil government for business

Reuters, 11/29/2012

JPMorgan Chase & Co (JPM.N) sees a strong government presence in Brazil as a source for new business leads, a senior banker said on Thursday, highlighting the growing clout of the nation’s public sector as an investment-banking client.

A decline in interest rates to record lows will create room for states and municipalities to access the debt capital markets in a way unheard of in the country, Aod Cunha, who heads the bank’s public sector corporate banking unit, told Reuters. Government presence in the economyaccounts for about 40 percent of Brazil’s gross domestic product.

Under President Dilma Rousseff, measures such as interest-rates, tax reductions and regulatory changes have gained the upper hand – a sign JPMorgan bankers say is proof that state presence will stay significant in the long run. Efforts to boost investment will increase demand for specialized financial advisers among government agencies, Cunha added.

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