Brazil is currently investing around 100 billion reais per year in oil and gas as well as infrastructure. However, we need to invest another $40 billion to $50 billion per year. We aim to add a minimum of 2% of GDP in infrastructure investment, to boost the aggregate investment to GDP ratio from its current 19% to 21% or more.
Parting shot: Brave new world
Brazil is finally poised for a ‘massive wave’ of project financing, argues Luciano Coutinho, president of the country’s development bank, BNDES
There is a challenge in financing the extra amount of investment we need. We intend to attract the private financial system to help share the burden with BNDES.
We believe that this is relatively viable given two important conditions. One is that interest rates are – and have already been – reduced substantially. Rates for Brazilian institutional investors, pension funds and insurance companies are now below their target, so they need to diversify their...
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