HALISTER1: Brazil’s New Long Term Rate to Be Approved in Congress: Analysts

Brazil’s New Long Term Rate to Be Approved in Congress: Analysts

(Bloomberg) -- Lower house commission may approve report on creation of TLP, a new interest rate to be used by development bank BNDES, and bring positive bias for domestic assets in the short term, analysts say. But since TLP is not a controversial subject and does not require a high quorum, it is not seen as a good parameter for pension reform.
  • TLP must pass the special committee on Tuesday, be sent to vote in the lower house on Wednesday and the Senate in the following week: Eurasia
  • Tendencias consultancy sees greater chance of approval, but alerts for the risk of the provisional measure expiring on Sept. 6 if there is a delay in the process
  • TLP is decisive and represents the concept of the new economic team in relation to BNDES, says Jose Francisco Gonçalves, chief economist at Banco Fator
  • TLP is not "a very faithful thermometer" for the pension reform, since each theme has a different basis of support, says Thiago Vidal, political analyst of Prospectiva
--With assistance from Ana Carolina Siedschlag. To contact the translator on this story: Daniela Milanese in Sao Paulo at dmilanese@bloomberg.net To contact the translation editor responsible for this story: Daniela Milanese at dmilanese@bloomberg.net; Giulia Camillo at gcamillo@bloomberg.net Reporters on the original story: Vinícius Andrade in São Paulo at vandrade3@bloomberg.net; Josue Leonel in Sao Paulo at jleonel@bloomberg.net Editor responsible for the original story: Daniela Milanese at dmilanese@bloomberg.net

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Jose Goncalves (Banco Fator SA)

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