Halister News

(Bloomberg) -- Brazil is unlikely to meet fiscal target as government has overestimated revenues in its budget, Mansueto Almeida, a consultant specializing in fiscal accounts, says in a phone interview.

• “As revenues are frustrated, a BRL 140b cut would be needed, but that is unlikely”
  • Govt should review all its spendings, including social programs; to close the fiscal gap with taxes, increase is not feasible as it would harm further the growth, Almeida says
• Luiz Eduardo Portella, treasurer at Modal Asset Management, says if country runs a second consecutive budget deficit, it will be difficult for BRL to remain below 4.00/USD
  • In short term, BRL’s relatively positive performance is due to environment of near zero rates of main central banks, which has led some investors to search for high- yield countries such as Brazil