The National Treasury has a target of phasing out annual capital injections into BNDES “within a few years,” Finance Minister Guido Mantega said.
In addition, both the Treasury and BNDES will put the brakes on lending to states, which might have to tap private-sector and state-run commercial lenders other than BNDES for new financing, he said.
The decision comes after years of criticism of President Dilma Rousseff’s efforts to use BNDES to speed up growth in Latin America’s largest economy. The Treasury has funneled more than 300 billion Reais (138 billion dollars) of taxpayer money into BNDES, a situation that some analysts have said stoked a rapid increase in government debt.
Brazilian conglomerate Odebrecht ODBES.UL plans to spend $8.1 billion in Mexico in the next five years in what appears to mark the biggest investment pledge yet from a Brazilian firm in Latin America’s No. 2 economy.
Odebrecht, one of Latin America’s biggest family-owned companies, will invest in petrochemicals, renewable energy, ethanol and sugar production and highway concessions, according to a statement put out by the office of Mexico’s president.
Marcelo Odebrecht, the company’s chief executive, on Tuesday met Mexican President Enrique Pena Nieto, the statement said.
The Economist, 09/29/2013
FOUR years ago this newspaper put on its cover a picture of the statue of Christ the Redeemer ascending like a rocket from Rio de Janeiro’s Corcovado mountain, under the rubric “Brazil takes off”.
The economy, having stabilised under Fernando Henrique Cardoso in the mid-1990s, accelerated under Luiz Inácio Lula da Silva in the early 2000s. It barely stumbled after the Lehman collapse in 2008 and in 2010 grew by 7.5%, its strongest performance in a quarter-century.
To add to the magic, Brazil was awarded both next year’s football World Cup and the summer 2016 Olympics. On the strength of all that, Lula persuaded voters in the same year to choose as president his technocratic protégée, Dilma Rousseff.
Leonardo Goy – Reuters, 08/12/2013
Brazil’s government put off bidding for a high-speed train project for at least one year because there was only one confirmed consortium competing for the 38 billion reais ($16.7 billion) deal, Transport Minister César Borges announced on Monday.
Lack of competition led the government to postpone the tender for the bullet train linking Brazil’s two largest cities, Sao Paulo and Rio de Janeiro, after Spanish and German groups guaranteed that they will bid if given more time, Borges said at a news conference.
After massive protests against corruption and misuse of public money paralyzed Brazilian cities in June, the government preferred not to open itself to further criticism by awarding the bullet train contract to the one bidder, analysts said.
Presidential chief of staff Gleisi Hoffmann announced the date for the auction to sell concessions to run. Rio’s Galeao airport and Belo Horizonte’s Confins at a Brasilia press conference.
Officials said bidders will have to make a minimum offer of 2.1 billion dollars for the Galeao concession and 450 million for Confins,
In February 2012, 20-year concessions were granted to manage three airports: two in Sao Paulo and one in Brasilia, breaking the monopoly of Infraero, the federal agency that runs more than 70 airports.
Associated Press, 08/09/2013
Sports Minister Aldo Rebelo says Brazil needs to find a way to speed up the completion of the six stadiums still being built for the 2014 World Cup.
Mr Rebelo on Thursday said Brazil learned from the Confederations Cup that it has to do a better job to guarantee the stadiums are finished by the December deadline established by FIFA.
Only two of the six venues needed for the warm-up tournament played earlier this year were completed by the initial deadline set by football’s governing body.
James M. Roberts – The Washington Times, 07/31/2013
Brazilians are angry. President Dilma Rousseff’s government is spending billions on beautiful new stadiums — and it’s all about image.
And when billions of viewers tune in to the 2014 soccer World Cup and 2016 Summer Olympics in Rio, Ms. Rousseff wants them to see what appears to be a First World country. But that’s not what Brazil’s middle class sees when they look out their windows.
What greets the average Brazilian’s eyes is an urban landscape of inadequate and, at times, crumbling infrastructure. Aging and crowded, their roads, airports, bridges and ports often have a decidedly Third World cast. And what makes the sight so irksome is the knowledge that this degradation of facilities continues — despite the fact that they pay high taxes every day in many ways.