March 1, 2003
Despite a strong start, Lula faces daunting challenges.
A year ago, Brazilian financial markets were petrified over the rise of Luiz Inácio Lula da Silva, of the Workers Party, and his subsequent election as president. The question was not if, but when he would default on government debts of $270 billion - voluntarily or not.Alarm over the sustainability of the government's debt burden has since faded, but a good dose of uncertainty over his government's commitment to rational economic policies remains. Although markets rallied after the election, prices remain depressed. In the final two months of 2002, between the election and Lul
Sovereign bond investors are relieved that the leftist admnistration of Luiz Inácio Lula da Silva promises to meet its financial obligations while pursuing its social objectives.