Brazil's government is studying tax breaks on long-term infrastructure and housing credit operations as a means of stimulating longer-term private sector financing, Finance Minister Guido Mantega said Monday. He said that Brazil relies too much on the state-run BNDES, the Brazilian National Development Bank, for long-term credit. The aim is to facilitate the issuance of debentures to fund big public works projects and stimulate the securitization of mortgage loans, which is an underdeveloped area in Brazil. Meanwhile, market regulator CVM is looking at ways of standardizing debentures issues as a first step towards creating a secondary market for local corporate debt, he added.

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Posted by mopeng at August 30, 2010 10:39 PM