The economic policy goals of Brazil are actively developed, with widespread international acceptance. The fiscal discipline, economic improvement and the compliance with inflation targets have helped to reduce the perception of risk.
According to Standard & Poor's, the upgrade of Brazil's long-term local and foreign currency sovereign credit ratings reflects the improvement of macroeconomic management after the real crisis of 1999, with fiscal adjustment, structural reform coupled with a credible floating exchange rate, and inflation targeting regimes. The international agency praised the Brazilian economic policy, which in 1999 had unprecedented success in limiting spending during an election year.
In view of this, Brazil has effected two bonus issues, to attract resources to roll over its external debt, and effect a partial payment including interest payments on this debt. The operations started on January 5 2001, with the issue of $1.5 billion in global bonuses. A few days later, a new issue of one billion eurobonuses provided Brazil's treasury with $942 million, payable within 10 years. These two issues provide Brazil with 37% of the total amount needed for its international debt service in 2001. As a result, Brazil has been viewed as the best choice in the emerging markets, and the first two issues of the year have not satisfied market demand.
Eliana Maria Filippozzi