Fearing lesser global liquidity, Brazil eliminates tax on foreign capital inflows

Wednesday, June 5th 2013 - 08:16 UTC

Full article 4 comments

Brazil will scrap a tax on foreign investments in local debt, a surprise move that could help stop a sharp depreciation of the country's currency which lost 7.6% in the past three months and that threatens to stoke already high inflation in Latin America's largest economy. Read full article

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ChrisR
At last! Something that will help Brasil get the money they desperately need to fund the infrastructure projects.

And it is about time that Brasilian industry tried to compete without the financial crutches that encourage sloth and avarice.

Mantega made the statement after meeting with President Dilma Rousseff. I bet the conversation went something like this:

Dilma “I have backed you against most of the western world who wanted you gone, what are we going to do now the International Money is in the shitter and we won’t get going with all the projects I have announced believing your twaddle that we would be alright with the foreigners?”

Mantega: “my assistant who has just resigned had this idea but we will have to make the industrial sector work for a living: what do you think?”

Dilma “Get on with it and it had better work or we will see another Finance Minister in place”.
Jun 05th, 2013 - 01:03 pm - Link - Report abuse 0
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Ernie4001
Bread for today .........hunger for tomorrow. And some guys say that brazilian economy is strong.
Jun 07th, 2013 - 02:49 am - Link - Report abuse 0
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Brasileiro
Brazil is the most completely country in the world. Strong in all structures: primary, secondary and services. For fall Brazil, need one hundred Guido Mantega, Chris.
Jun 07th, 2013 - 10:04 pm - Link - Report abuse 0
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ChrisR
3 Brasileiro

I know you are very proud of your country, but don't fall into the trap that your government is guided by the gods, they are not.

Dilma has quite rightly realised what a terrible mess the infrastructure is in and has made it a priority to vastly improve the roads, rail and ports to ensure the free flow of goods.

Why do you think there are 55 and 35 days idling in the seaways by ships waiting to collect soy? The cost of this is borne by the companies exporting the soy and I imagine the government in cost of delays claims. ALL a waste of money that could be put to better use.

Dilma needs to face it that Mantega is not doing Brasil any good at the international level and that is where the money has to come from to pay for all the infrastructure improvements. If you kill the chickens (international investors) you will no longer get the eggs.
Jun 08th, 2013 - 01:10 pm - Link - Report abuse 0
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