HALISTER1: Brazil New Rate Vote Delay Not a Sign That Govt Gave Up: Eurasia

Brazil New Rate Vote Delay Not a Sign That Govt Gave Up: Eurasia

(Bloomberg) -- Despite this initial resistance, the government has already signaled that it has a plan B if there is no time to approve the new long term rate (TLP) before it expires, says Eurasia’s Joao Castro Neves in a phone interview.
  • There is an expectation that there is still time to approve the bill as it’s proposed now
    • Despite some disagreements, there is a consensus that approval is the right path to take
  • Plan B would be sending a new law project withing the so-called urgency regime
    • In this case, it would be possible to approve the creation of the long term rate before the end of the year, Neves says
  • External environment and global liquidity have been benign for Emerging Markets in general, especially for Brazil
  • With this scenario, it is possible that the market reacts little to the delay
  • NOTE: Brazil Govt Suffers Setback and Long-Term Rate Vote Is Delayed
To contact the translator on this story: Kariny Leal in Rio de Janeiro at kdeoliveira1@bloomberg.net To contact the translation editor responsible for this story: Giulia Camillo at gcamillo@bloomberg.net Reporter on the original story: Kariny Leal in Rio de Janeiro at kdeoliveira1@bloomberg.net Editors responsible for the original story: Daniela Milanese at dmilanese@bloomberg.net Taís Fuoco

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Source: BFW (Bloomberg First Word)

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Joao Castro Neves (Eurasia Group)

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