Saturday, April 21, 2018 | ePaper

Brazil pledges to forge on with reforms after S&P downgrade

  • Print
AFP, Sao Paulo :
Brazil vowed Thursday to push on with economic reforms after the international credit ratings agency Standard and Poor's downgraded its long-term credit rating because of "slower-than-expected" changes by President Michel Temer's government.
"The government reiterates its commitment" to forge on with measures such as a reform of pensions in an effort "to guarantee the sustainable growth of the Brazilian economy and long-term fiscal balance," the finance ministry said in a statement.
S&P earlier announced it was downgrading Brazil's credit standing further into junk status, at BB- because of its disappointing efforts to "correct structural fiscal slippage and rising debt levels on a timely basis."
There was also uncertainty from Brazilian presidential elections later this year, in which Temer was not standing.
The agency kept Brazil's short-term rating at B.
S&P said there was "less than one-in-three likelihood" of it changing its long-term rating, either up or down, over the coming year.
"This reflects Brazil's comparative external and monetary policy strengths that help offset significant fiscal weakness, an economy with growth prospects lower than peers, and our view that effectiveness of policymaking across branches of government has weakened," it said.
It noted "lack of support" among Brazilian politicians for stronger fiscal measures, and expressed pessimism that whoever ends up leading the country after elections would have the "significant political capital" needed to pass reforms.
"While the economy has stabilized, we see slow growth and fiscal weaknesses as key credit constraints," the ratings agency said.
The finance ministry said the S&P downgrade showed the "need and urgency" for reforms to be approved by Brazil's Congress, notably the pensions system.
Brazil's economy is projected to grow two percent this year, according to an annual report by the United Nations-backed Economic Commission for Latin America and the Caribbean (CEPAL) released last month.
While unspectacular, that is far better than the 0.2 percent expected for 2017, or the two years of Brazil's worst-ever recession preceding that.
The government's own projections are slightly more optimistic: three percent in 2018 and 1.1 percent in 2017.
Temer remains unpopular with voters, clouding the political outlook ahead of the presidential elections, the first round of which is scheduled for October 7, with a run-off on October 28.
The frontrunners for the election so far are leftist former president Luiz Inacio Lula da Silva and rightwing former army officer Jair Bolsonaro.  Neither man is much welcomed by investors.

More News For this Category

Bazlur Rahman, Chairman of Notundhara Assets Limited, inaugurating its three-day long single Housing Fair-2018 at a hotel in the city recently. Sadi Uz Zaman, Managing Director, Ferdous Alam Khan, CEO and Merina Sadi, DMD of the company among others were also present.

Bazlur Rahman, Chairman of Notundhara Assets Limited, inaugurating its three-day long single Housing Fair-2018 at a hotel in the city recently. Sadi Uz Zaman, Managing Director, Ferdous Alam Khan, CEO and Merina Sadi, DMD of the company among others were also present.

.

China-Chile FTA boon to European business

Xinhua, Santiago :In geographical terms, Chile marks the farthest point from China, but the two countries have succeeded in forging a free trade agreement (FTA) that has brought them

Ericsson shares fly as Swedish telecom giant caps losses

AFP, Stockholm :Swedish telecoms firm Ericsson posted improved first quarter results Friday, as it presses a massive cost-saving drive that has prompted thousands of jobs cuts.Investors welcomed the news,

Nizam Chowdhury, Chairman of NRB Global Bank Limited, presiding over its 4th AGM at its corporate head office in the city on Wednesday. Dr. Mohammed Faruque, Arif Ahmed, Osman Gani, Morshedul Alam, Wahidul Alam Seth, Md. Mostain Billah Adil, Danny Chowdhury, Mosammat Shajada Noor Begum, Bourhanul Hassan Chowdhury, Rokea Yesmin, Directors and Proshanta K Halder, Managing Director of the bank among others were also present.

Nizam Chowdhury, Chairman of NRB Global Bank Limited, presiding over its 4th AGM at its corporate head office in the city on Wednesday. Dr. Mohammed Faruque, Arif Ahmed, Osman Gani, Morshedul Alam, Wahidul Alam Seth, Md. Mostain Billah Adil, Danny Chowdhury, Mosammat Shajada Noor Begum, Bourhanul Hassan Chowdhury, Rokea Yesmin, Directors and Proshanta K Halder, Managing Director of the bank among others were also present.

.

Modi faces protests as he signs $1.42b deal on UK trip

AFP, London :Indian Prime Minister Narendra Modi was on Wednesday set to sign o1 billion ($1.42 billion, 1.14 billion euros) of investment deals with Britain during a visit to

Japan Takeda eyes Shire takeover after rival drops bid

AFP, Tokyo :Shares in Japanese drug maker Takeda dropped Friday after a potential rival in its bid to take over Ireland's Shire Pharmaceuticals said it was no longer considering

AMP CEO resigns amid deepening banking scandal

AFP,  Sydney :The CEO of Australian finance company AMP resigned suddenly on Friday after revelations of widespread abuses by the firm, including charging thousands of customers for services never

British inflation drops to lowest level in year

AFP, London :British inflation unexpectedly slowed in March to reach the lowest level in a year, data showed Wednesday, undermining the urgency of raising interest rates although analysts said

WB projects positive growth for Sri Lanka

Xinhua, Colombo :Sri Lanka's economy will rebound in 2018 with annual growth averaging 4.5 percent in the medium term, according to a World Bank report released Tuesday.In its latest

China's ZTE vows to fight US supplier ban

AFP, Beijing :Chinese telecom giant ZTE vowed on Friday to fight back against a US order banning it from purchasing and using US technology for seven years, a move