Brazil Able to Manage Debt Amid Global Market Rout, Valle Says

A global rout in stock markets today won’t affect Brazil’s ability to manage its public debt, Deputy Treasury Secretary Paulo Valle said.

“Brazil is doing well,” he said in a telephone interview from Brasilia. “We have already financed more than 80 percent of our debt this year and in the coming months will have little maturing.”

The Bovespa tumbled 5.7 percent today, the worst performing among the world’s 20 biggest equity markets, paced by declines in commodity producers, hurt by dissapointing earnings and concern the global economy is weakening.

The Treasury and central bank will change rules for selling public debt from Aug. 9, including the time of weekly auctions and incentives for dealers to use electronic trading systems, Valle said. Demand for notes should rise as the changes will add liquidity to secondary and primary markets in the country, he said.

“We listened to dealers and improved the system to make it more efficient,” Valle said.

To contact the reporter on this story: Arnaldo Galvao in Brasilia Newsroom at agalvao1@bloomberg.net

To contact the editor responsible for this story: Francisco Marcelino at mdeoliveira@bloomberg.net

Bloomberg reserves the right to edit or remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.