Brazil’s ready if financial crisis worsens: Minister

August 5th, 2011 - 3:26 pm ICT by IANS  

Rio De Janeiro, Aug 5 (IANS) Brazil is well prepared to deal with a possible worsening of the global financial crisis, Finance Minister Guido Mantega said.

“In case of escalation of the world crisis, Brazil has never been more prepared to deal with the consequences,” said Mantega Thursday.

He added that Brazil not only has more foreign exchange reserves, but also measures introduced during the 2008 financial crisis, such as credit-easing and tax cuts, to minimise the damage, reported Xinhua.

Mantega expressed concern over the US economy and the eurozone debt crisis and added that more financial turmoil may hit emerging economies.

He said the financial crisis will affect Brazil by leading to the fall of stocks and a decrease in trade and credit.

The Brazilian government has already ordered a series of tax breaks, and the Central Bank lowered reserve requirements to increase the amount of money in circulation.

Brazil’s Bovespa stock index fell 5.72 percent Thursday.

Bovespa’s indicator has accumulated a fall of 10.2 percent this week and 23.7 percent in 2011.

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