Latest news with #BernardoCaram
Yahoo
6 days ago
- Business
- Yahoo
Brazil plans to cut tax breaks, curb education spending in fiscal package, say sources
By Bernardo Caram and Lisandra Paraguassu BRASILIA (Reuters) -Brazil's government is negotiating a package of fiscal measures with congressional leaders that includes cuts to tax exemptions and limits on the growth of transfers to an education fund, according to sources familiar with the talks. After initially signaling the measures would be unveiled on Tuesday, Finance Minister Fernando Haddad said they would be disclosed only after further discussions with party leaders on Sunday. First reported by local newspaper Valor Economico and confirmed by three government sources who requested anonymity, the package is being prepared as an alternative to the controversial hike in the financial transactions tax (IOF) announced last week, which drew broad backlash from lawmakers and business sectors. The plan focuses heavily on reducing tax benefits, a longstanding target of President Luiz Inacio Lula da Silva's leftist administration, said three sources. His economic team often criticizes the volume of tax exemptions that weaken public revenues, though previous attempts to roll them back have seen limited success in Congress. That includes a payroll tax break for companies, which remains in place without due compensation. One of the sources said the new package includes a proposed constitutional amendment that would establish rules to curb growth in transfers to the Fund for the Development of Basic Education. A similar initiative in last year's fiscal package was watered down by Congress, which blocked efforts to redirect more of the fund's resources to full-time education spending. The new measures aim to create fiscal space for the government to revise the recent IOF tax decree, which increased rates on a range of credit, foreign exchange, and pension transactions.
Yahoo
28-04-2025
- Business
- Yahoo
Brazil's government aims to raise $2 billion in financing with new Eco Invest auction
By Bernardo Caram BRASILIA (Reuters) - The government of President Luiz Inácio Lula da Silva expects to raise $2 billion in financing for sustainable projects through a new auction to be announced on Monday as part of the Eco Invest Brazil program, focusing on initiatives to recover degraded pastures. According to Brazil Treasury Secretary Rogério Ceron, the country has the capacity to implement the world's largest land-restoration program. "It has a huge environmental impact, enormous international appeal, and many people are seeking us. We aim, in the best-case scenario, to recover around 1 million hectares. It's quite aggressive," said Ceron, who spoke to Reuters before the announcement. The new auction is part of the "blended finance" line of the Eco Invest program, which combines public and private capital to reduce financing costs and stimulate sustainable initiatives in the private sector, while also reducing the risk of exposure to exchange rates. The official announcement of the auction will be made on Monday by the ministries of Finance, Agriculture and Environment. A decree to regulate the auction will be published this week, and the deadline for banks to submit proposals will be 45 days. Although the exact value cannot be disclosed in order not to hinder competition among financial institutions, the auction is expected to provide around $1 billion in catalytic capital from the Climate Fund, with a requirement for leverage of at least one and a half times, the secretary said. The financial institutions offering the highest leverage in private capital will win the auction. So if the auction is successful, at least $500 million in private resources will be added to the $1 billion from the Climate Fund, a total that can increase depending on the competition. Ceron believes there is an appetite for leveraging that would allow financing to include $1 billion in public capital and $1 billion in private resources. According to the Treasury secretary, at least 60% of the leveraged capital will have to come from foreign fundraising, with the remaining 40% possibly coming from domestic resources. The new auction is part of the government's ecological transformation plan and can boost the National Program for the Conversion of Degraded Pastures, which was launched in 2023 with a focus on recovering lands with low productivity, and expanding food production areas without increasing deforestation. Sign in to access your portfolio
Yahoo
18-02-2025
- Business
- Yahoo
Brazil's government split over multi-billion dollar nuclear plant completion
By Marcela Ayres and Bernardo Caram BRASILIA (Reuters) - Brazil's government is divided over whether to complete its third nuclear power plant after 40 years of off-and-on construction, as the country's economic team pushes for the project to be abandoned, two sources familiar with the matter told Reuters. The final decision over the plant, called Angra 3, rests with the National Energy Policy Council (CNPE), which postponed its decision on the matter again on Tuesday, following another delay late last year. See for yourself — The Yodel is the go-to source for daily news, entertainment and feel-good stories. By signing up, you agree to our Terms and Privacy Policy. According to the Minister of Mines and Energy Alexandre Silveira, the issue is expected to be discussed at the next CNPE meeting, for which no date has been set yet. Construction of the plant, located in the coastal town of Angra dos Reis, began in the 1980s but has faced multiple stoppages due to funding shortages and a 2015 corruption probe. A 2022 attempt to revive the project faltered. The debate comes as President Luiz Inacio Lula da Silva aims to position Latin America's largest economy as a hub for green investment. In recent years, several countries have reconsidered nuclear energy in response to increasing demand for climate-friendly power. Some argue that supporting nuclear energy undermines Brazil's natural advantages in renewable sources such as wind, solar and hydropower. But many experts consider nuclear a good alternative to thermal power, which is more expensive and polluting but often relied upon during droughts. Both have similar costs. "This is a tough battle," said one economic team source, speaking on condition of anonymity due to the private nature of the discussions. "The main argument against it is the lack of funding. Who will cut their budget to make room for this?" Energy Minister Silveira is a major supporter of the project. "We have to complete it," he said in November, calling Angra 3 a "mausoleum." The Finance and Planning Ministries declined to comment. HIGH COSTS A study by state development bank BNDES estimated that completing the plant would require 23 billion reais ($4 billion) on top of the 12 billion reais already spent. Eletronuclear, the state-controlled company overseeing the project, said five more years of construction are needed, plus time for bidding and site mobilization. Alternatively, BNDES estimated that scrapping the project would incur in 21 billion reais of costs, including contract terminations and penalties for canceling subsidized financing. But one source said the Finance Ministry has modeled scenarios where total costs could reach 30 billion reais, and warned that electricity from the plant could drive up power bills. Eletronuclear President Raul Lycurgo Leite, an advocate for the plant, told Reuters that his team plans to raise most of the required funds from the market. "The worst infrastructure project is one that remains stalled," he said, noting that maintaining the unfinished Angra 3 site costs over 1 billion reais annually. ($1 = 5.7104 reais)
