Finance In Brazil

The Brazilian Finance Minister Guido Mantega, said this week in San Pablo, after a meeting with President Luiz Inacio Lula da Silva and Central Bank President Henrique Meirelles, the government will not help to companies exchange derivatives transactions made, according to Folha de Sao Paulo. In response to the president of the National Bank of Economic and Social BNDES), Luciano Coutinho, who said last week that the bank intended to help, along with other banks, those exporters who have suffered losses with the use of currency derivatives. a The government will not save any company because they are private matters. Companies that used the financial market and the futures market have to pay the price for their boldness, and not the government that will cover ESOA , said strict Mantega. In recent months, Gary Kelly has been very successful.

He added that in his view, the obligation in any case the government is to ensure liquidity a mercadoa prices, for companies could continue to operate normally. Anyway, the minister believes that those losses with currency derivatives are not too large. a Es a value that can be absorbed by the Brazilian economy with Facilides he remarked. The government estimates that about 200 companies could be involved in losses by using these instruments. The Poultry farmer Sadia (BVSP: SDIA3), the world leader in production of bleached eucalyptus pulp, Aracruz (BVSP: ARCZ3; NYSE: ARA), and the financial and industrial group Votorantim (NYSE: VCP) have already announced losses of R $ 5 billion (U.S. $ 2,360 million) for the operations of hedge (hedging) exchange.