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Guedes - BZ Not At Risk Of Fiscal Dominance

BRAZIL

Economy Minister Guedes spoke in an interview earlier. He stated the outlook for the three largest public expenditures in Brazil is under control, which reduces the chance of fiscal dominance.

  • Government halted momentum on the "explosive" dynamic of govt spending on social security, debt interest and civil servant salaries.
  • Focus now on bringing down public debt and preventing salary increases to govt employees.
  • Privatizations and deleveraging of state banks will help bring down public debt.

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