Brazil Finance Chief Remarks Fuel Fiscal Worries, Roiling Assets

 

• Haddad expressed concern in Friday meeting with investors
• Swap rates surged as minister sought to contain damage

Brazil Finance Minister Fernando Haddad expressed concern about the country’s fiscal outlook during a Friday afternoon meeting with investors, tanking assets and sparking a public attempt to contain the damage.

Haddad told investors that he would need to make significant spending cuts to hit the country’s fiscal target if Congress does not approve revenue measures he has proposed, according to multiple people with knowledge of the matter. He also spoke about the importance of discussing other ways to reduce spending, including delinking pension benefits from minimum wage increases, the people said.

https://www.bloomberg.com/news/articles/2024-06-07/brazil-finance-chief-remarks-fuel-fiscal-worries-roiling-assets