November 2017

23Nov

What’s at Stake With Brazil’s Pension Bill

Brazil’s Congress may vote in coming weeks on President Michel Temer’s flagship proposal to cap pension spending. Since it was first presented to Congress a year ago, the proposal has been watered down several times in an attempt to secure support the three-fifths majority needed in both houses. The Temer administration now expects to guarantee at least 50 percent of the 750-800 billion reais ($230-246 billion) in savings envisaged over a decade in the original proposal. The following charts show...

November 23, 2017
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21Nov

Brazil house speaker says whipping votes for pension reform difficult, but urgent

The speaker of Brazil’s lower house said on Tuesday that it will not be easy to obtain the 308 votes needed to pass a much anticipated pension reform, but that doing so is “fundamental and urgent” for the country. In an interview with Brazil’s CBN radio, Maia said it was important that the government completed a reform to Brazil’s ministerial framework soon, so that it can advance in negotiations regarding pensions. Source Reuters

November 21, 2017
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09Nov

Brazil moves to dilute unpopular pension reform bill

Brazilian congressional leaders will meet on Thursday to agree on a watered down version of an unpopular pension reform bill after the government conceded it cannot muster enough support for its proposed belt-tightening. Brazil's benchmark stock index Bovespa jumped, closing 2.7 percent higher on news of the renewed push to reduce the cost of the country's generous pension system. A day earlier, the index fell to a two-month low after President Michel Temer said the pension bill might not pass...

November 9, 2017
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08Nov

Brazil central banker urges pension overhaul to avoid market turmoil

Brazil's congress needs to reform the country's pension system while global markets are favorable or risks facing more volatility, central bank chief Ilan Goldfajn said on Tuesday during an event in Uruguay. "We don't have until the end of times to do what must be done," Goldfajn said during a panel with fellow central bank presidents from Latin America. Talks resumed last month after the lower house voted to reject a criminal charge against President Michel Temer. But pessimism over...

November 8, 2017
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October 2017

31Oct

Now or never for Brazil’s pension reform

After two years of economic recession, the Brazilian economy is finally showing signs of recovery amidst a continuous political crisis. Since officially taking office in August 2016, President Michel Temer has prioritized the implementation of a broad austerity package to include spending cuts and a series of reforms meant to stabilize Brazil’s fiscal position and promote greater economic growth. As of October 2017, Brazil’s inflation rate is at a low 2.54% and is expected to close 2017 at 3.06%, while...

October 31, 2017
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05Oct

Brazil intervenes in fraud-hit Postalis pension fund

Brazil’s pension oversight body Previc ordered a 180-day intervention in Postalis Instituto de Previdência Complementar, the pension fund for post office workers, for breaking rules on reserve requirements and investments, the regulator said on Wednesday. Postalis, Brazil’s largest fund by number of participants, has amassed billions of reais in losses over the past decade due to risky bets and has run a deficit every year since 2011. Prosecutors in May charged eight people, including the fund’s former president, with tax...

October 5, 2017
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September 2017

06Sep

More Corruption Allegations Mean Brazil Pension Reform Dies Another Day

Brazil's pension reform, which no one in their right mind believes is passing congress this year, got yet another death sentence on Monday. Lower House Speaker Rodrigo Maia said this month was a no-go for entitlement talks. Maia blamed new allegations of corruption against President Michel Temer. "I think that with another example of foul play that we are hearing about in the media makes it difficult for us to pass any proposals for changes to the constitution until the end of...

September 6, 2017
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April 2017

27Apr

Brazil. Pension reform will avoid “radical” measures, says minister

Reform of Social Security During seminar, holder of the Ministry of Planning, Budget and Management said that the proposal of the federal government is "gradual." Without change, budget will be "unfeasible" Aimed by the government as essential for sustainability of public accounts, pension reform will prevent "radical" solutions from being taken in the future to contain the system's deficit. With the change of the rules of retirement, the Minister of Planning, Budget and Management, Dyogo Oliveira, said on Tuesday (25) that...

April 27, 2017
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19Apr

Brazil waters down pension reform as protests turn violent

Brazilian President Michel Temer on Tuesday made new concessions to ease passage of an unpopular pension reform bill, leading police unions to try and invade Congress in the latest angry demonstration from a labor group. The watered-down proposal, which has faced pressure from skittish lawmakers, has raised doubts among investors about how close it will come to the original goal of narrowing a huge and growing budget deficit. After the details of the new proposal were revealed on Tuesday, protesting police...

April 19, 2017
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07Apr

Brazil government sees no risk to austerity in pension reform changes

Proposed changes to the Brazilian government's pension reform proposal do not threaten an ongoing overhaul of government finances, the finance ministry said in a statement on Thursday. Brazil's real weakened and local stocks fell on Thursday over doubts whether President Michel Temer will be able to secure approval for a pension reform designed to rebalance the country's depleted accounts. Full Content: Reuters Remember to subscribe to our free weekly newsletter for more news or subscribe to our service to get unlimited access.

April 7, 2017
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