Day: June 18, 2020

Copom reduces basic interest rates to 2.25%

The Monetary Policy Committee of the Central Bank unanimously decided to reduce the Selic by 0.75 percentage points, from 3.00% to 2.25% per year. This is the eighth consecutive rate cut in the current cycle, after a 16-month period of stability. With that, Selic is now on a new floor of the Copom’s historical series, which started in June 1996.

Safra Plan 2020/21 will have record financing of $46 bn

The Brazilian government announced a record of R$236.3 billion ($46 bn) in funds for financing by the Safra Plan 2020/21, up 6.1% compared to last season’s amount. Of the total, R$179.38 billion ($34.6 bn) will be used for funding and marketing and R$56.92 billion ($11 bn) will be for infrastructure investments.

Pandemic cuts insurance sector revenue by 26.1%

Revenue from the Brazilian insurance sector fell 21.4% in April, compared to the previous month, and 26.1% in comparison with April last year, reaching R$15.7 billion ($3 bn), the lowest premium collection since February 2016, when it totalled R$15.026 billion ($2.88 bn).

99% of deforestation in Brazil in 2019 was done illegally

According to data from Mapbiomas, 99% of the deforestations that happened in 2019 in Brazil were done illegally, which placed the country in the first place of deforestation in the world. According to the report, Brazil lost 12,000 km2 of native vegetation in 2019, which means that deforestation in the country is advancing 1.5 km2 per hour.

Telefónica distributes $173 mm in interest on equity

Telefônica’s board of directors approved the distribution of R$900 million ($173 million) in interest on capital, equivalent to R$0.49 per common share and R$0.42 per preferred share. In net terms, discounting income tax, the amount is R$765 million ($147 million). The amount will be imputed to the mandatory minimum dividend of 2020.