Crisis Shows Brazil’s Strengths As Investment Venue
Wall Street Journal reports, “Alan Thompson, managing director for Latin America at Temasek Holdings, Singapore’s sovereign wealth fund, agreed that Brazil’s strong financial system is an important factor in the country’s strong economic growth potential. Not a single bank failure has occurred in Brazil since September 2005 when Banco Santos was closed in what Brazilian bank regulators called an isolated event.
‘Over the last two years, we recognized that the economic world order is changing,’ said Thompson, who said Temasek has made several investments since establishing a presence in Brazil last year.
Thompson also said Brazil’s moderate inflation of 4% was the result of well-developed institutions that drive monetary policy. He cited stable fiscal policy as the reason Brazil has become a net creditor to the rest of the world and accumulated $200 billion in foreign exchange reserves. The global financial community has recognized Brazil’s new place in the world. Standard & Poor’s upgraded Brazil’s sovereign debt to investment grade last year. Foreign investors poured in a record $45 million of direct investment in 2008. “
read more: Wall Street Journal
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