MercoPress. South Atlantic News Agency
Brazil's next government will have to implement a tough fiscal tightening, says Fitch
Fitch Ratings on Thursday reaffirmed Brazil's “BBB” credit rating with a stable outlook, but added it expects the next government to control spending in order to avoid additional fiscal deterioration that could trigger a downgrade. Read full article
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Disclaimer & comment rulesIf brazil is serious abt her future standing in the world,
Jul 11th, 2014 - 09:26 am - Link - Report abuse 0then she will do and endure what is required ..
If the present bunch get re-elected it will be more of the same:
Jul 11th, 2014 - 11:09 am - Link - Report abuse 0The Liar Mantega still telling lies to bolster international investment;
Still trying to manipulate Mr. Market, not a good thing to do at any time, especially when the economy is heading to a freefall;
Unable to come up with any positive ideas as to the way forward.
I think they have got away lightly with this rating, S&P's have gotten it tight at this moment but it will go down at the next review.
I'm not sure serious fiscal tightening and paying for an Olympic Games are good bedfellows.
Jul 11th, 2014 - 01:58 pm - Link - Report abuse 0@3 Britworker
Jul 11th, 2014 - 04:31 pm - Link - Report abuse 0Indeed. However they can get the majority of the money from sponsors, like they were supposed to do with the World Cup.
The Brazilian government just seems to think that sponsors will be knocking on their door when in fact they've got to go out and 'sell, sell, sell' to get that money, basically telling the sponsors what is in it for them that makes it worth their while investing.
The Brazilians didn't do too well regarding the World Cup funding - the public ended up paying for most of it, so we can only hope that they do better over the Olympics.
However I have a feeling that in 2 years time it'll be more of the same. Too much public money spent on the games, too many poor people getting het up about the government spending money on luxury for foreign athletes, and not on making their lives better.
If Brazil has any sense they'll go for a frugal games, that will be fun but more cost effective. However, I have the feeling that they believe that they have to out do London 2012, when they don't have to out do anything (just like the British didn't try to out do China) they just have to do it differently and add their own flair and culture to it.
Time will tell how well it works out.
Yes I was wondering just how much the World Cup followed 2 years later by The Olympics is costing Brazil.
Jul 11th, 2014 - 06:41 pm - Link - Report abuse 0Mexico had the '68 Olympics followed in '70 by the World Cup, but this was before the cost of these thing skyrocketed.
Otherwise It does seem to be two very expensive events in close proximity.
FIFA has turned the event in such a circus of flying billions of dollars in expenditures, the World Cup has become something prohibitive for countries with fiscally responsible economic policies. That´s why nowadays we see the likes of Putin and the sheiks of Qatar hosting these luxurious and lavish events. They bring little infrastructure, last too little and leave fiscal accounts in ruins.
Jul 14th, 2014 - 02:19 am - Link - Report abuse 0If the PT gets a 4th term in the October elections, not much will change, except for the fact they will need to find new, more creative ways to lie to the people. Given the PT's incompetence and their project for Brazil, which is to perpetuate themselves in power, even if it means allowing the country to go down the drain, they will just increase the value and number of handouts, and spend billions on propaganda to fool the majority until they reach their objective - a one-party political system, in which they, the PeTistas , are the absolute rulers, and the people just a means to get there.
Jul 14th, 2014 - 06:04 pm - Link - Report abuse 0Commenting for this story is now closed.
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