precatorio

May 18 (Bloomberg) — Brazil may offer more 10- and 30-year bonds in international markets this year, tapping into demand for the country’s most-traded securities, Deputy Treasury Secretary Paulo Valle said [more]

May 13 (Bloomberg) — Brazil plans to begin taxing interest on some savings accounts and may lower taxes on fixed-income funds to maintain demand for government bonds as the central bank cuts the benchmark rate.

The tax on earnings from savings accounts of 50,000 reais ($23,900) or more, which will go into effect next year if approved by congress, removes the biggest impediment to future interest rate cuts, central bank President Henrique Meirelles said. Currently, interest income from the so-called poupanca accounts isn’t taxed.

The government is concerned that investors will abandon the debt funds it relies on for bond sales as the benchmark interest rate is set to drop below 10 percent, and turn to savings accounts, which by law guarantee at least a 6 percent return. Policy makers slashed the so-called Selic rate to a record low 10.25 last month in a bid to revive growth in Latin America’s biggest economy.

“We want to discourage investors who today are in other funds from migrating to savings accounts,” Finance Minister Guido Mantega told reporters today in Brasilia. “If there was a big migration, the savings accounts would stop being a safe haven and begin attracting speculators.”

Meirelles said today’s changes could allow the bank to make “substantial reductions of interest rates in Brazil” if needed.

‘Distortions’

Gustavo Franco, central bank president from 1997-1999, said the “distortions” in the financial system caused by falling interest rates is a problem Brazil is “lucky” to have.

Banks that for decades earned returns of at least 20 percent on government bonds, the legacy of hyper-inflation that reached 6,800 percent in 1990, will have to boost lending to more economically productive areas, he said in an interview on May 8.

“The poupanca is just the tip of the iceberg,” said Franco, the chief strategist at Rio de Janeiro-based money manager Rio Bravo Investimentos. “Banks that have been working in one mode for years, adapted to the old environment of high rates, will have to change. The potential for transformation is limitless.”

Savings accounts only will be taxed if the Selic is below 10.5 percent, Mantega said. Any tax breaks on fixed income funds would be temporary, for this year only, until the new levies on savings accounts are enacted, said Bernard Appy, a special adviser to the Finance Ministry.

Demand for Bonds

“The demand for government bonds will be preserved by these moves,” said Roberto Padovani, chief economist at Banco WestLB in Sao Paulo.

The yield on Brazil’s zero-coupon bonds due January 2010 declined five basis points, or 0.05 percentage point, to 9.44 percent. Economists expect policy makers to cut the benchmark rate to 9.5 percent at their next policy meeting in June, according to a central bank survey published May 8. The Selic will remain below 10 percent until at least 2011, the same survey of 100 Brazilian economists found.

Mantega said the changes won’t affect the “great majority” of small savers.

The Popular Socialist Party, Brazil’s third-biggest opposition party, ran a television ad this month comparing the government’s plans to former President Fernando Collor’s 1990 confiscation of the savings accounts. Collor was impeached two years later.

“Million of Brazilians save part of their hard-earned wages in a savings account to build a better future,” the country’s three biggest opposition parties wrote in May 7 joint statement. “To meddle with the savings accounts is to penalize the workers twice: with the unemployment brought on by the economic crisis and with the risk of seeing their savings eroded.”

To contact the reporters on this story: Andre Soliani in Brasilia at asoliani@bloomberg.net; Joshua Goodman in Rio de Janeiro jgoodman19@bloomberg.net
By Andre Soliani and Joshua Goodman

Last Updated: May 13, 2009 16:08 EDT

REUTERS – Tue May 12, 2009 8:36pm BST

By Walter Brandimarte

NEW YORK, May 12 (Reuters) – Fitch Ratings affirmed Brazil’s investment-grade credit ratings on Tuesday but warned that the country’s fiscal credibility will be tested by the global economic crisis.

Fitch said Brazil’s lower primary surplus target for 2009, coupled with an economic contraction and increased Treasury transfers to the national development bank, will increase a public debt burden that is already “significantly higher” than that of similarly-rated countries.

“A challenging economic environment will expose Brazil’s structurally weak public finances and test the authorities’ fiscal credibility as they grapple with a revenue shock in 2009,” Fitch analyst Shelly Shetty said in the statement.

She added, however, that the country does not face financing constraints due to the depth of domestic markets and the proven government ability to access international capital markets this year despite tough market conditions.

Fitch currently rates Brazil at BBB-minus, the lowest investment-grade level, with a stable outlook. The rating is supported by a robust external balance sheet, the country’s macroeconomic stability as well as political consensus on the thrust of macroeconomic policies, the agency said.

Constraining the ratings is the government’s heavy debt burden, currently at 60 percent of gross domestic debt, as well as its weak public finances, modest growth rates and a “glacial” pace of reforms, it added.

Brazil’s credit-worthiness could be pressured, Fitch said, by a marked deterioration of its debt composition, sustained fiscal slippage, or significant contingent liabilities potentially arising from the financial sector.

Latin American markets have become more sensitive to possible rating downgrades as the global economic crisis pressures the region’s economy, after years of bonanza.

Standard & Poor’s on Monday revised down the outlook of Mexico’s BBB-plus credit rating, saying a downgrade is possible later this year. On Tuesday, it cut the ratings of El Salvador by one notch to BB.

Fitch Ratings has a negative outlook on Mexico’s ratings since November. (Editing by Leslie Adler)

SAO PAULO -(Dow Jones)- Brazil on Thursday flaunted its increasingly favorable status among investors by scoring lower yields and increased volume in a reopening of its 2019 global bond.

After initially seeking $500 million, the Brazilian Treasury sold half again as much to eager investors. The $750 million bond tap came with a coupon rate of 5.875% and a yield of 5.8%, or 252 basis points over U.S. Treasurys.

By contrast, the original issue of the Global 2019 came with a yield of 6.127% , or 370 basis points over Treasurys.

Said one Sao Paulo market participant: “It was a perfect window of opportunity. U.S. Treasurys are near zero and appetite for Brazil is rising. The Brazilian Treasury scored a bull’s eye.”

Thursday evening, the treasury said it will offer the bonds overnight to Asian investors. The Asian offer could add $37.5 million to the total volume.

Barclays PLC (BCS) and Citigroup Inc. (C) were bookrunners on the deal.

Brazil was taking advantage of emerging-market risk premiums breaking new lows, with Thursday’s spread on JPMorgan’s Emerging Market Bond Index Global at 477 basis points over Treasurys by late afternoon. Brazil’s spread neared the end of the session at 308 basis points over Treasurys.

The spread was looking set to end the day at a new seven-month low following Wednesday’s close at 497 basis points over Treasurys. Emerging-market bonds have gained 12.08% so far this year, while Brazil’s debt has gained 2.49% in the same period.

Brazil’s $750 million reopening joins the $46.8 billion in sovereign and quasi-sovereign emerging-market debt issued so far this year, according to data compiled by ING Bank in New York. That compares to an issuance of $17.6 billion in the same period last year, ING said.

Books on the deal reached an astonishing $4 billion, with a little less than 200 investor accounts on them, sources familiar with the deal said.

“The government is using this operation to add quality to its debt profile. In the past, Brazil accessed the market to roll over debt; now it is focusing strictly on quality issues,” said Roberto Padovani, Latin America’s chief strategist at WestLB bank.

Deputy Treasury Secretary Paulo Valle explained Brazil’s “quality” approach in an April interview with Dow Jones Newswires, saying the government was interested in a well-anchored yield curve for its overseas bonds. He said that would demand a total volume of at least $1.5 billion for the 2019 bond. The original issue in January totaled $1.025 billion.

“Our strategy is focused on quality issues, to improve our debt profile,” Valle added.

Thursday may be only the start.

“The sovereign issue will also tend to open the debt market for local companies,” said Padovani.

Despite the government’s recent successes, local companies are still timid when it comes to debt placements. So far this year, only state-run oil company Petrobras (PBR), construction conglomerate Norberto Odebrecht and meatpacker JBS S.A. (JBSS3.BR) have accessed the market.

-By Rogerio Jelmayer and Claudia Assis, Dow Jones Newswires; 5511-2847-4521; rogerio.jelmayer@dowjones.com

(Tom Murphy in Sao Paulo contributed to this report.)

  (END) Dow Jones Newswires
  05-07-09 1735ET
  Copyright (c) 2009 Dow Jones & Company, Inc.

In reply to the article Precatórios – Bom Senso e Responsabilidade

of April 28th, 2009, the Estadão published on the 2nd of May, 2009 the following letter to the editor

Precatórios
Alega o prefeito Gilberto Kassab que o objetivo da PEC 12 é possibilitar o planejamento do pagamento de precatórios e sujeitar governantes às rígidas punições da Lei de Responsabilidade Fiscal (LRF) e ao sequestro de valores. Todo ano o orçamento da Prefeitura de São Paulo prevê pagamento de precatórios, mas sistematicamente, nos últimos anos, eles não são pagos, os recursos têm sido desviados para outras finalidades e nada acontece com os prefeitos. A LRF já existe, não há necessidade de emenda constitucional para efetivá-la. Alega, ainda, o prefeito Kassab que a nova regra aprovada pelo Senado, nessa PEC 12, prevê correção e juros dos precatórios não pagos pela poupança. Não é justo corrigir os débitos do governo com o particular pela poupança, enquanto os débitos do particular com o governo são corrigidos por taxas e juros muito maiores, além de multas e outras severíssimas penalidades. Essa PEC 12 estipula que serão pagos primeiro os precatórios de menor valor e depois os outros. E a ordem cronológica como fica? Quem espera há décadas vai continuar esperando e, provavelmente, morrer sem nada receber. Não é justo. Participar de leilão eletrônico para receber irrisória fração daquilo a que se tem direito, atestado pela Justiça? Se eu fosse investidor estrangeiro, pensaria umas dez vezes antes de aplicar recursos em empreendimentos num país onde a Justiça é tão desprezada e a segurança jurídica será nula se vingar essa tal PEC. Sinceramente, prefeito Kassab, não vejo nessa PEC 12 nem bom senso nem responsabilidade. E muito menos justiça.
PAULO T. SAYÃO, engenheiro civil
Cotia

BRASILIA (Dow Jones)–Brazil’s government is studying a possible overseas bond issue to be launched before the end of the first half of this year, Treasury Secretary Arno Augustin said Wednesday.

“It could be in the first half,” Augustin said at a news conference. “Recent issues have been successful. Rates have been lower than paid by some other countries with better sovereign ratings than Brazil.”

In January, Brazil issued $1.025 billion in global bonds due in 2019. The bonds were sold at a yield of 6.127%.

Augustin said Brazil’s government had “no special need to issue bonds at the present time.” He said the government was well stocked with dollars to meet debt service costs. Foreign reserves are over $200 billion.

Augustin said Brazil would only return to overseas markets in order to take advantage of low interest rates.

In an interview with Dow Jones Newswires on April 8, Deputy Treasury Secretary Paulo Valle said the government was studying the possibility of reopening the Global 2019 bond in order to take advantage of favorable market conditions.

-By Gerald Jeffris and Tom Murphy, Dow Jones Newswires; 55-11-2847-4519; brazil@dowjones.com

• APRIL 29, 2009, 4:34 P.M. ET

Estadão – by Gilberto Kassab, Mayor of the City of São Paulo

A aprovação da Proposta de Emenda Constitucional (PEC) que estabelece novas regras para o pagamento de dívidas de Estados e municípios, fixado em decisões judiciais, enseja críticas, controvérsias e até visões parciais e desprovidas do senso de realidade. Ao contrário do que se imagina, a iniciativa não pode ser confundida, em nenhuma hipótese, com “calote” aos credores. O objetivo principal da PEC é justamente o oposto, ou seja, possibilitar o planejamento do pagamento de precatórios, que, não raro, são passivos acumulados ao longo de décadas. E, mais relevante ainda, assegurar que as dívidas sejam efetivamente liquidadas, sujeitando os governantes às rígidas punições previstas na Lei de Responsabilidade Fiscal, sequestro de valores e bloqueios de transferências voluntárias, entre outras.

Pelas regras atuais, é extremamente difícil planejar a liquidação dos débitos existentes, uma vez que decisões judiciais determinam o sequestro de recursos, comprometendo a gestão das finanças públicas e as obrigações decorrentes de compromissos assumidos, seja com pagamento de salários ou de fornecedores. Vale mencionar também que o governo federal abriu mão de R$ 8,9 bilhões em receitas, com mudanças no IPI, correção da Tabela do Imposto de Renda e outras medidas de incentivo à produção. Desse total, a União renunciou a R$ 4,2 bilhões, enquanto Estados e municípios deixaram de receber R$ 4,7 bilhões, por conta da redução da receita dos Fundos de Participação dos Estados (FPE) e dos Municípios (FPM). Nos últimos meses, a arrecadação de todos os municípios foi afetada pela redução de cerca de R$ 2,1 bilhões no FPM – de modo especial, a situação de mais de 4.500 municípios que têm até 30 mil habitantes e dependem fundamentalmente desses repasses.

Ademais, os precatórios são corrigidos por índices heterogêneos, aplicados de forma variada pelos diversos Tribunais de Justiça dos Estados, acarretando distorções de toda ordem. A título de exemplo, uma área desapropriada na cidade de São Paulo em 1999, ao custo de R$ 23,8 milhões, gerou um precatório cujo valor corrigido atinge R$ 71 milhões. Como a Prefeitura já pagou R$ 24,2 milhões, deve ainda a quantia de R$ 46,8 milhões. Caso fosse aplicada a nova regra aprovada pelo Senado, que prevê correção e juros pelos critérios da poupança, esse precatório deveria ser de R$ 48,7 milhões, e não de R$ 71 milhões.

Além disso, a PEC aprovada no Senado define para os Estados um valor mínimo de pagamento anual de precatórios que varia de 0,6% a 2% da receita corrente líquida. Para os municípios os porcentuais a serem depositados anualmente variam de 0,6% a 1,5% também da receita corrente líquida. Tais recursos ficarão disponíveis em conta especial gerenciada pelo Poder Judiciário.

Dos recursos destinados ao pagamento de precatórios, 60% serão reservados para pagamento de dívidas por meio de leilões eletrônicos e os outros 40%, para pagamento à vista, em ordem crescente de valor. A liquidação das dívidas por leilão é uma decisão discricionária dos credores, que, optando por negociar seus títulos de maneira transparente e pública, não se subordinarão aos escritórios “especializados” que atuam no mercado. Por outro lado, o pagamento em ordem crescente de valor possibilitará que os precatórios de menor valor sejam pagos em primeiro lugar, corrigindo-se, assim, injustas distorções que a atual legislação permite.

Entre os novos precatórios, terão primazia os alimentares cujos credores sejam cidadãos com 60 anos ou mais, com valores de até 90 salários mínimos para os municípios e 120 para os Estados. Garante-se, ainda, a devida correção das dívidas com base nos índices e juros da Caderneta de Poupança. Buscou-se, assim, tornar as regras socialmente mais justas, assegurando que determinações do Poder Judiciário possam ser cumpridas sem que os munícipes tenham postergadas as suas demandas mais urgentes.

Sob o prisma das prioridades, como se sabe, a administração pública, sobretudo nos municípios, ajusta seu foco em função das maiores demandas sociais. Áreas como saúde, educação, transporte e saneamento básico encabeçam o rol de prioridades e das demandas por recursos públicos. Veja-se, por exemplo, o caso de São Paulo. Centro de uma região metropolitana com 39 municípios e cerca de 20 milhões de pessoas, nossa capital herda parcela considerável dos efeitos da conurbação entre os espaços urbanos, significando que seu crescimento demográfico ultrapassou o ritmo da organização política e social. Ademais, o crescimento desordenado gerou espaços diferenciados e manchas urbanas multiformes. E, por consequência, apesar dos esforços das municipalidades para aplicar políticas condizentes com as demandas e pressões sociais por serviços qualificados, observa-se, em muitos espaços, um “apartheid” social. As grandes cidades brasileiras retratam esta dura realidade.

Não podemos fechar os olhos à identidade urbana do Brasil contemporâneo: se em 1970 o País tinha apenas duas metrópoles, passou a ter cinco em 2000 e as cidades médias, no mesmo período, passaram de 30 para 194. Hoje cerca de 80% dos brasileiros vivem em áreas urbanas, enquanto as 15 metrópoles concentram as forças produtivas, centralizando 62% da capacidade tecnológica do País. Essa situação impõe ingente desafio: gerir os recursos disponíveis para mitigar as dívidas sociais acumuladas ao longo dos anos. Os desafios são monumentais. A título de exemplo, cabe ressaltar que, na área da saúde, em São Paulo a meta é desafiadora, ou seja, atingir o padrão aceitável de 4,5 leitos para cada mil habitantes.

Em face de desafios como esse, resta aduzir que a aprovação de mecanismos que estabeleçam equilíbrio entre pagamento de precatórios e atendimento às prioridades é o ponto central que norteia a intenção de gestores públicos responsáveis.

Gilberto Kassab (DEM-SP), engenheiro e economista, é prefeito de São Paulo

Estadão – Terça-Feira, 28 de Abril de 2009

BRASILIA (Dow Jones)–Brazil’s total federal debt rose by 1.3% in March to 1.398 trillion Brazilian reals ($633 billion) due to net debt issuance and interest accrual during the period, the government reported Wednesday.

In a joint statement, Brazil’s central bank and treasury said the country’s domestic federal debt load denominated in reals rose 1.6% from February to BRL1.27 trillion.

The government reported the overall increase in domestic federal debt came alongside BRL8.45 billion in net debt issuance and BRL11.95 billion in interest accrual.

At the same time, Brazil’s outstanding federal debt overseas fell 2.36% from February to BRL130.5 billion.

The treasury said the decrease was due mainly to a appreciation of the local currency, the real, which strengthened by about 5.0% against the dollar during the period.

Speaking after the release of the figures, public debt coordinator Guilherme Pedras said the domestic debt result was influenced by the issuence of BRL13 billion in LTN fixed-rate debt during the month to provide credit for the country’s BNDES National Development Bank. The debt, which matured on April 1, is part of a government plan to issue up to BRL100 billion through the end of the year for BNDES financing. Under the contract, the BNDES will repay the funds at the country’s TJLP long-term interest rate of 6.25%, plus 2.5% annually.

Meanwhile, regarding the profile of federal domestic debt in March, treasury officials reported floating-rate debt fell to 37.18% of total domestic debt during the month from 38.66% in February.

At the same time, the share of fixed-rate debt rose to 30.09% from 28.40%.

The share of inflation-indexed bonds fell during the month to 30.10% of debt from 30.25%, while exchange-linked debt fell to 1.06% of the total from 1.11% the previous month.

Brazil’s government has been attempting to lengthen its debt profile and reduce its exposure to interest-rate risk through increased sales of fixed-rate and inflation-indexed debt.

The government reported Tuesday that average maturity of domestic debt fell to 3.31 years in March from 3.38 years in February.

Additionally, the government said the volume of domestic debt maturing in the coming 12 months rose in March to 32.28% from 29.96%. The average cost of debt coming due in the next 12 months fell to 13.40% annually from 13.54% annually.

The March federal debt figures released Wednesday represent a key element of consolidated public-sector debt figures scheduled for release next week.

Brazil posted net consolidated public sector debt in February of BRL1.09 trillion, equivalent to 37.0% of gross domestic product.

-By Gerald Jeffris, Dow Jones Newswires; (5561) 3335-0832; gerald.jeffris@dowjones.com

APRIL 22, 2009, 3:46 P.M. ET

Waldemar Jezler – www.libracap.net

The finances of the Municipalities are being negatively affected by the economic slowdown and they are resorting to various types of relief. Below they are requesting that their social security obligations be financed in 20 years. Another line of action has been to push a Constitutional Amendment that reduces their annual commitments to the payments of Precatórios.

Prefeitos apresentam dados sobre impacto de débitos do INSS

Liderando a pressão para que o governo dê moratória aos municípios, com o alongamento de suas dívidas previdenciárias por até 240 meses, a Confederação Nacional dos Municípios (CNM) concluiu levantamento para mostrar o impacto dos débitos do INSS nas contas das prefeituras, em tempos de baixa arrecadação.

No primeiro trimestre, a União reteve R$594 milhões do Fundo de Participação dos Municípios (FPM) referentes a esses débitos. O desconto automático no repasse do FPM corresponde às dívidas de 4.013 municípios. No primeiro trimestre, o repasse da União para os municípios foi de R$11,9 bilhões, segundo a CNM, ou seja, R$1,7 bilhão a menos que no mesmo período de 2008. Para o ano, as prefeituras acreditam que as perdas chegarão a R$8 bilhões. O governo anunciou ajuda de R$1 bilhão e se comprometeu a garantir os repasses de 2008 (R$51,3 bilhões)

Os prefeitos dizem ter sofrido grande redução no repasse do FPM devido aos descontos, além da queda de arrecadação. Outros, diz a CNM, ficaram sem repasse. Esta semana, o PMDB quer fechar com a relatora da medida provisória 457, deputada Rose de Freitas (ES), seu parecer, para acatar reivindicações dos municípios. A MP prevê o alongamento dos débitos em até 240 meses (20 anos). A CNM defende um encontro de contas, afirmando que os prefeitos devem R$22 bilhões ao INSS, mas a União teria dívidas com as prefeituras de R$25,4 bilhões. A Receita Federal reconheceria R$7 bilhões. A relatora deve, ainda, substituir a Selic (11,25% ao ano) pela Taxa de Juros de Longo Prazo (6,25%), para correção dos débitos previdenciários.

Cristiane Jungblut – O Globo – 20/04/2009

Waldemar Jezler – www.libracap.net