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Brazil’s treasury minister says end of US deadlock is a relief to the world

Criado em 16/10/13 19h09 e atualizado em 16/10/13 19h11
Por Wellton Máximo Edição:s Fonte:Agência Brasil

Brasília – Brazil’s treasury minister Guido Mantega said on Wednesday (October 16) that the agreement reached in the US Senate to raise the public debt ceiling and unfreeze the budget represents a relief to world economy.

“The world economy is recovering. We can say we’re doing reasonably well, and a measure of this kind [the freezing of the budget and the default of the US public debt] could hinder this project,” the minister remarked. “This arouses a feeling of insecurity and mistrust, and, therefore, is harmful to negotiations in general.”

Mantega went on to point out that the instability in the economic system over the last few days may have been detrimental to the issue of securities from Brazilian companies interested in raising funds abroad. “The government didn’t issue any [securities into the international market], but I suppose some private companies have been harmed, because the market was a bit upset while the problem wasn’t solved.”

The minister further stated that this agreement is a temporary one, to be brought into effect before a definitive solution can be found: “I believe in a resolution, but not exactly one that would please the US government, but something in-between. They’ll take a breath in this meantime and keep postponing [the solution to] this problem for a while.”

Early in the afternoon (October 16), republican and democratic leaders of the US Senate announced an agreement that established the raise in the US debt ceiling until at least February 7, and the resume of public services until January 15. In order for this rule to be brought into effect, however, the agreement must be approved by deputies and senators by midnight (local time, 1 a.m. in Brasília).

Editors: Nádia Franco / Olga Bardawil
Translators: Fabrício Ferreira

Creative Commons - CC BY 3.0

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