Brazil Can Manage Debt Amid Global Market Rout, Valle Says
A global rout in stock markets yesterday 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 yesterday, the worst performing among the world’s 20 biggest equity markets, led by declines in commodity producers. Brazilian stocks have also been affected by disappointing earnings and concern the global economy is weakening.
The Treasury and central bank will modify rules for selling public debt starting Aug. 9. Changes include the timing of the weekly auctions and new incentives for dealers to use electronic trading systems, Valle said. Demand for notes should rise since the changes will add liquidity to Brazil’s secondary and primary markets, he said.
“We listened to dealers and improved the system to make it more efficient,” Valle said.
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