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BRASILIA, Feb 2 (Reuters) - Brazil is at an “inflection point” where more government spending could erode its fiscal credibility in the eyes of investors and potentially damage the economy, according to Central Bank of Brazil President Roberto Campos Neto.
In an online address to the World Trade Symposium that was recorded last Friday and broadcast on Tuesday, Campos Neto said any further fiscal stimulus should be matched with spending cuts elsewhere to ensure public finances are put on a longer-term sustainable path.
“The message now is that if for some reason we need further fiscal stimulus, it has to have a counterpart which saves money from some other place,” Campos Neto said.
By Reuters Staff
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MANILA, Feb 7 (Reuters) - The Philippines aims to raise $23.71 billion from external sources to bridge a planned budget deficit and fund priority projects this year, including $5.5 billion from the commercial markets, the Department of Finance said on Sunday.
The amount is 39% higher than the $17.01 billion the government raised from external sources last year for key infrastructure projects and for helping bridge a wider budget deficit due to state spending on COVID-19 response measures.
A total of $8.06 billion of this year’s amount will be for budget support purposes, while the balance of $15.65 billion will be for project financing, the DOF said in a statement.
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SAO PAULO, Feb 2 (Reuters) - Itau Unibanco Holding SA CEO Milton Maluhy said on Tuesday he is focused on beating back the challenge from financial startups, exploring options to improve the Brazilian lender’s results in Chile and Argentina and dealing with the uncertainties brought by the coronavirus pandemic.
In his first public appearance at the helm of Brazil’s biggest lender, Maluhy said Itau’s results in Chile and Argentina are not creating value for shareholders. When asked by an analyst if Itau is focused on acquisitions or sales in Latin America, Maluhy described the bank as generally being a buyer, but added that it is open to opportunities.
The head of the IMF on Friday urged advanced economies to provide more resources to low-income countries, warning of an emerging "Great Divergence" in global growth that could risk stability and trigger social unrest for years to come.