Impeachment lowers uncertainties for Brazil, challenges remain

Impeachment lowers uncertainties for Brazil, challenges remain

Brasilia, Sep 2 (IANS) International credit ratings agency Moody’s said that former Brazilian President Dilma Rousseff’s impeachment removed an aspect of political uncertainty in the country, but a lot remains to be done to improve its credit outlook.

Rousseff’s successor, Michel Temer, who headed the interim government in the past several weeks, introduced a policy agenda that emphasized structural reforms so as to restore fiscal sustainability and improve market sentiment, Moody’s said in a statement on Thursday.

While these helped business confidence, a tangible improvement in Brazil’s fiscal accounts has not yet been seen, Xinhua news agency quoted the statement as saying.

“The government has had a measure of success in passing some reforms through Congress, but the details of key reform proposals such as the social security reform have yet to be hammered out,” Samar Maziad, Moody’s vice president and senior analyst, said in the statement.

Moody’s also expressed doubts as to whether Temer’s government could abide by the spending cap of 170.5 billion reais ($52 billion) established earlier this year.

“Complying with the proposed spending cap would be extremely difficult without the social security reform, as benefit payments currently account for about 40 percent of total federal spending,” the statement said.

Finally, it said that “the Temer administration’s ability to get Congress approval will be a key factor driving Brazil’s credit outlook during 2016-18,” it added.

Leave a Reply

Please enter your comment!

The opinions, views, and thoughts expressed by the readers and those providing comments are theirs alone and do not reflect the opinions of www.mangalorean.com or any employee thereof. www.mangalorean.com is not responsible for the accuracy of any of the information supplied by the readers. Responsibility for the content of comments belongs to the commenter alone.  

We request the readers to refrain from posting defamatory, inflammatory comments and not indulge in personal attacks. However, it is obligatory on the part of www.mangalorean.com to provide the IP address and other details of senders of such comments to the concerned authorities upon their request.

Hence we request all our readers to help us to delete comments that do not follow these guidelines by informing us at  info@mangalorean.com. Lets work together to keep the comments clean and worthful, thereby make a difference in the community.

Please enter your name here