Moody's: Brazil fiscal reform momentum to continue

Monday, 20 January 2020 22:23:00 (GMT+3)   |   Sao Paulo
       

Credit rating agency Moody’s said Brazil’s fiscal reform should continue its momentum, despite evolving “political dynamics.”

Moody’s labeled Bolsonaro’s latest fiscal reform moves as “credit positive,” despite recognizing reform initiatives are “complex,” due to what they can achieve and the legal process required for approval.

“A narrow time frame to approve the reforms before campaigning for local elections begins in mid-2020 also poses a challenge,” the credit rating agency noted. “Proposed fiscal reforms seek to increase fiscal flexibility and set the debt level as a fiscal policy anchor.”

According to Moody’s, an effective tax reform would improve the business environment in the medium-term.


Most Recent Related Articles

CSN and Usiminas increase steel prices between 10.2 and 12 percent

Usiminas may raise steel prices in December

CSN to delay mining IPO to 2021

Usiminas increases Capex spending forecast to repair its blast furnace

Brazilian flat steel sales by distributors up 17 percent in October