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Brazil Considers Helping Portugal Ease Debt Crisis

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http://www.guardian.co.uk/business/2011/mar/30/brazil-considers-helping-portugal

Brazil is considering offering financial support to Portugal to help its former colonial power avoid being sucked even deeper into its debt crisis.

Brazilian president Dilma Rousseff said on Wednesday that her government was studying ways in which it could buy Portuguese government debt. Another option would be to give Portugal a cash injection by buying back some of Brazil's debt which it currently owns.

"One of the possibilities is buying part of Portugal's sovereign debt," Rousseff told the Diário Económico newspaper. "We are also examining other alternatives such as early buyback of Brazilian bonds held by the Portuguese government."

Brazil broke away from Portugal in 1822, but the countries enjoy close political and economic ties. According to the International Monetary Fund, the Brazilian economy is now almost 10 times larger than that of Portugal.

Any lifeline from Brazil would be welcome for Portugal, whose debt costs have spiked to record highs this week. Its credit rating was slashed to the brink of "junk" status on Tuesday and many City economists believe a rescue package is becoming inevitable.

So Portugal are still hoping to avoid another bailout and now is looking to help from Brazil. Would Brazil be borrowing the money to buy back it's own debt?

Even if this happens it can only be a temporary fix before the inevitable bailout happens.

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http://www.guardian.co.uk/business/2011/mar/30/brazil-considers-helping-portugal

So Portugal are still hoping to avoid another bailout and now is looking to help from Brazil. Would Brazil be borrowing the money to buy back it's own debt?

Even if this happens it can only be a temporary fix before the inevitable bailout happens.

Sounds like protectionism to me.

Which of course is OK for countries like the US, France and China, but they call it something different.

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Sounds like protectionism to me.

Which of course is OK for countries like the US, France and China, but they call it something different.

If i were brazil i would buy back my debt from portugal, the currency is stronger so it'll cost less, and its another way to devalue their currency making their exports cheaper, they'll see realis increase in supply an decrease demand, while they reduce the supply of euros and increase demand pusing up the cost of the euro.

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http://www.guardian.co.uk/business/2011/mar/30/brazil-considers-helping-portugal

So Portugal are still hoping to avoid another bailout and now is looking to help from Brazil. Would Brazil be borrowing the money to buy back it's own debt?

Even if this happens it can only be a temporary fix before the inevitable bailout happens.

Apparently Brazil doesn't have a NET foreign debt any more - if Wikipedia is right:

"Gross external debt: US$310.8 billion (31 December 2010 est.)
Foreign reserves: US$328.6 billion (December 2010)"

http://en.wikipedia.org/wiki/Economy_of_Brazil' rel="external nofollow">

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  • 311 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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