Brazil has failed so far to develop its infrastructure and to attract foreign resources in the amount required, and warranted, by important economic sectors, Lately, however, promising efforts have been set in motion to overcome this historical pattern.
LS Brazil Outlook analyses this month new initiatives in this regard.
A bill of law drafted by the Central Bank and sent to Congress last month intends to ease foreign exchange rules; a new Provisional Measure in force since the beginning of October aims to foster foreign investments in Brazil’s high performing agribusiness sector.
In addition, we shed light on financer protection mechanisms already provided by Brazilian Law, such as hedge mechanisms and step-in rights for infrastructure projects, which are potentially relevant – but rarely resorted to.
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