Moody’s trusts Brazil’s economic reforms
The parent company is confident that the Caribbean country will maintain its reform agenda, including the fiscal sector
Despite the political challenges that Brazil is going through, and following the approval of the social security reform last October, Moody’s hopes that the South American country will maintain its reform agenda, including the prosecutor. “This is a positive credit trend that goes against the trends observed in other parts of the region,” the agency said.
Moody’s said in a statement that “fiscal reform is likely to move forward in 2020, because support for the economic agenda” remains strong among the main political parties in Congress.
For his part, the president of Brazil, Jair Bolsonaro, has launched a series of reforms and measures to rebalance public accounts and try to recover an economy that lost 7% points between 2015 and 2016.
In that sense, Moody’s stressed that “a review of the complex and expensive tax system in Brazil was a distinctive proposal” of the Bolsonaro Administration and with the tax reform “would improve the business environment in the medium term”.
K.Villarroel
Source: bancaynegocios
