BRAZIL: the government Says That S&P Recognizes efforts To improve the Fiscal health
Brazil’s Finance Ministry said that of the Standard & poor’s credit rating Agency recognized that the government’s measures of economic growth to strengthen and improve the country in the fiscal environment in the coming years, despite the Agency’s decision to downgrade Brazil’s sovereign credit rating from ‘BB’ to ‘BB-‘ with a stable Outlook.
The Brazilian government says that S&P confirmed the government’s position in relation to the need and urgency of the pension reform, the approval and the displacement of the adjustment and increase of social security contribution of civil servants to consolidate the public accounts.
S&P mentioned to limit public spending, the work of the reform, the tax recovery program, said the re-opening of the oil and gas sector, the reformulation of BNDES-credit policy and the new Long-Term control (TLP) and the current monetary policy stance as a credit-positive factors for Brazil, the government.
The Brazilian government confirmed that “there continues to be fiscal consolidation, which will need to be discussed progress on the reform agenda in the National Congress, and with the improvement of the productivity and the resumption of growth.”
“We always count on the support and approval of the necessary measures for the country by the National Congress, and we are sure that it will continue to labour in favour of fundamental reforms and budgetary adjustments for Brazil,” the Ministry said in the statement.