Several Brazilian officials turned up bright and early at Thomson Reuters’ offices in London this morning, despite the snow and tricky local infrastructure (malfunctioning Tube trains), for an investment roundtable. (Here’ the Reuters Insider broadcast of the event)
The officials, including undersecretary for public debt Paulo Valle, have been in London all week talking to bankers and investors. Some of the issues raised today included the continued imposition of the IOF tax on foreign purchases of domestic bonds, corporate governance and debt levels.
Valle told Reuters that Brazil could issue a $1.0-1.5 billion 10-year global bond denominated in reais this year, and he has been talking to bankers about it this week (here’s the Spanish version)
Inflation is also an issue, even though it fell today to its lowest in 11 months, while foreign demand is in danger of lighting too much of a fire under the real currency, which rose 8 percent against the dollar last month.
Paulo Oliveira, ceo of BRAIN (Brazil Investments and Business) told investors that too much money at once can cause problems: