The Art of the "Impossible"

Oct 1, 2002

Brazil's economic crisis is in full swing, with the currency in free fall and the economy ready to plunge into a severe recession. It seems inevitable that Brazil's large and structurally unsound debt must be restructured. Only a confidence shock that would boost the value of the real and bring interest rates crashing down could avert this outcome. The good news is that Brazil's economic problems are mainly, if not entirely, homegrown. Local investors hold most of the government's debt, which is mainly short and medium term, and denominated in reais, although tied to the exchange rate or overnight interest rate. The incoming government's economic team could impose a reasonably creative and market friendly solution...

To continue reading please take a free trial, subscribe or login below.

Already have an account?


Subscribe now for unlimited access to all current and archive news, data and market analysis. 


Free trial

Take a free two-week trial now for the latest news, data and market analysis.

Free Trial

Upcoming Events


Where will capital markets be busiest in 2017?