Brazil’s fiscal conditions very favourable: Official

December 8th, 2011 - 1:36 pm ICT by IANS  

Rio De Janeiro, Dec 8 (IANS) With sound fiscal performance and solid public accounts, Brazil can withstand ramifications of the eurozone debt crisis, a top treasury official has said.

“Brazil’s fiscal conditions are very favourable and will help the country resist the eurozone crisis,” Treasury Secretary Arno Augustin told reporters Wednesday.

He added that the government will block any possible spending increase in 2012 that might be approved by the parliament, as part of its efforts to meet public savings targets next year, reported Xinhua.

Augustin cited the country’s efforts to avert effects of the eurozone crisis, including inflation rate controlling and fiscal policy tightening, which he considers a weakness of European countries.

“We issued bonds, we had upgrades on the country’s rating, granted by international credit rating agencies, and we strengthened the aspects which are still weak in other countries,” he said.

While saying Brazil can maintain a tight fiscal policy and economic growth, the official also voiced concern over the crisis, which he said, is complex and may take a long time to get solved.

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