Brazil finance official flags debt concern, but urges time for gradual fiscal adjustment
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Brazil finance official flags debt concern, but urges time for gradual fiscal adjustment
Brazil’s public debt rise by 354.42 billion reais ($65.21 billion) in the year through May. The expansion comes as markets remain skeptical that the inflation target will be met. The government remains committed to achieving fiscal balance, Dario Durigan said.
SAO PAULO, July 1 (Reuters) – The executive secretary of Brazil’s finance ministry, Dario Durigan, acknowledged on Tuesday concern over the country’s debt trajectory, but said the government needs time to implement a gradual fiscal adjustment.
Latin America’s largest economy saw its public debt rise by 354.42 billion reais ($65.21 billion) in the year through May, driven mainly by interest expenses, which increased amid the central bank’s tightening cycle to curb inflation.
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The expansion comes as markets remain skeptical that the inflation target will be met in the years ahead, given the government’s continued increase in spending.
Speaking at an event hosted by Citi, Durigan said the government remains committed to achieving fiscal balance and is poised to meet its fiscal goals this year and the next if lawmakers approve proposals it has submitted to Congress.
($1 = 5.4354 reais)
Reporting by Fernando Cardoso; Writing by Marcela Ayres; Editing by Gabriel Araujo
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