Brazil will have great business opportunities with Great Britain after its separation from the European Union on January 31, said the advisory minister of the Brazilian embassy in London, Robert Doring. The United Kingdom imports 50% of the food and beverages it consumes, 60% of them from the European Union and 4% from South America (2018). The embassy launched the website Observatório Brasileiro do Brexit (Brazil Brexit Watch) offering information on how Brexit will affect trade relations between the two countries.
Brazil’s federal public debt increased 9.5% in 2019 compared to the previous year, reaching a record R$ 4.248 million ($1.012 billion), the National Treasury Secretariat of the Ministry of Economy of Brazil reported. However, despite the increase, the 2019 Annual Financing Plan (PAF) was fulfilled, which established that the public debt could end last year between R$ 4.1 billion and R$ 4.3 billion.
Brazil may take advantage of low interest rates to issue a 20-year benchmark bond later this year if demand is sufficient, the country’s Treasury said, as it set out its 2020 debt forecasts and financing plans. Securities linked to the central bank’s benchmark Selic rate are expectred to account for between 40% and 44% of outstanding debt this year versus 38.9% last year, while fixed-rate securities will account for between 27% and 31%, compared with 31% last year.
Brazil’s state-controlled oil company Petroleo Brasileiro SA has hired seven investment banks to sell a stake in its fuel distribution unit, Petrobras Distribuidora SA (BRDT3.SA). Petrobras is working to reduce its hefty debt load by selling some $20 billion-$30 billion in assets over the next five years, among them the 37.5% stake in BR Distribuidora about $3 billion.