Brasília – Brazil should return to selling bonds abroad whenever market conditions are favourable, informed on Wednesday (6) the National Treasury secretary, Arno Augustin. He pointed out that, for the time being, exchange problems, with the Brazilian real appreciated against the dollar, will not affect the Brazilian issue of bonds.
"We are not going to stop [issuing] for this reason. Also due to the fact that they are qualitative and do not influence this aspect [the flow of foreign currency]. Our issuances are more qualitative," he said. Brazil, on issuing bonds abroad, is not always aiming at collecting funds. Sometimes, the operations serve to evaluate the receptiveness of investors to Brazilian papers and to create parameters for new issues by the government and companies.
The secretary minimized the country’s need for collections at the moment, as Brazil’s net debt is dropping. Arno added that cash of the Sovereign Fund may be used as part of the "arsenal of measures" to face the appreciation of the real against the dollar. He did not want to specify whether actions in this respect will be announced this week.
*Translated by Mark Ament
