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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: THE ANT who wrote (48304)	4/7/2009 12:02:05 PM
From: elmatador	Respond to of 217705

Deutsche Bank makes positive evaluation on Brazil will come out stronger from the global economic crisis than most emergent countries Deutsche Bank makes positive evaluation on Brazil GENEVA - Brazil will come out stronger from the global economic crisis than most emergent countries, evaluates Deutsche Bank, one of the biggest financial institutions of Europe. The German bank points to some factors of advantage of Brazil in comparison to many countries that fight with substantial weight of the debt and weak banking systems. In note signed for its analyst of Latin America, Markus Jagger, the German bank mentions, first, that the necessities of external financing of Brazil are small, and the current account will have to be widely financed by the entrance of Foreign Direct Investments (FDI). Second, rolling of external debts is also manageable, because interest rates continue to be low. Moreover, the bank notices that the position of the external indebtedness of the government is solid. Today, the public sector is creditor in foreign currency. It means that the debt falls if the currency devaluates, in contrast to vulnerabilities of the past. The tax policy and the solution of the public sector do not worry at the moment. Brazil has room to use policies anticrisis. But the bank considers more realistic to wait a primary surplus, not of 4% of the GDP, but between 2% and 3%. Another advantage of Brazil, in the evaluation of the German bank, is the room to continue cutting interest rates. Lower interest rates combined with a well capitalized banking system will be able "sooner or later" to reactivate the credit and to restart domestic demand in the country. "Brazil will not escape of a economic deceleration, but well positioned for a sustainable recovery; concludes the bank, in an evaluation that is close to that one the authorities in Brasilia do. (Assis Moreira \| Valor Economico)