Lula has put the brakes on a social security system run wild. The benefits of pension reform are small, but they will at least head off a payments crisis.
Social Security expenses now exceed revenues by more than $24 billion. The Lula Administration must find a way to stop the excess spending in its federal budget.
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.
Are populist governments like Venezuela & Argentina turning pragmatic?
In some ways
“The crisis has been a setback for reserve diversification."
Jan Dehn, Ashmore Investment Management
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