Tag Archives: Brazil

Highline Brasil acquires Blackstone-backed Phoenix do Brasil Tower | Instant News


SAO PAULO (Reuters) – Highline do Brasil, a portfolio company of US private equity firm Digital Colony, has reached an agreement to acquire telecommunications infrastructure company Phoenix Tower do Brasil, it said on Tuesday, adding 2,500 new sites to its portfolio.

Phoenix is ​​supported by the Blackstone Tactical Opportunities fund. After the acquisition, Highline will have 3,200 sites in Brazil.

The agreement value was not disclosed in the joint statement.

Highline is also interested in acquiring assets owned by Brazilian telecommunications company Oi SA, such as its tower and fiber units. nL1N2F70OH

Reporting by Carolina Mandl; Edited by Richard Chang

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Analysis: Brazil faces a $ 112 billion refinancing gap in early 2021 | Instant News


BRASILIA (Reuters) – Brazil’s debt has swelled to unprecedented levels due to the COVID-19 pandemic and the government faces a $ 112 billion refinancing gap early next year, with April funding needs the highest for one month.

Publicly, at least, Treasury officials in Latin America’s top economies insist there will be no problems getting investors to lend to them. The so-called liquidity cushion can cover at least three months of the loan.

In addition, nearly all of Brazil’s debt is denominated in reais and more than 90% of it is held by domestic investors, many of whom are forced to hold it by banking regulations.

Financial analysts also see little risk of a boycott by lenders, which is likely to trigger a serious crisis and wreak havoc on Brazilian financial markets.

But the likelihood that the Ministry of Finance may have difficulty repaying debts, due to sudden unfavorable political, economic or market conditions, is not zero. And it will likely pay a premium to shift so much debt at once, analysts say.

According to Treasury Department figures, about 605 billion reais ($ 112 billion) of domestic federal debt is due in the first four months of next year. That’s 14.1% of Brazil’s 4.82 trillion reais pile of domestic debt.

The month to watch is April, when the 283 billion reais of debt will need to be extended. That is 6.6% of Brazil’s debt and will be the largest single month of maturity debt on record, according to the Ministry of Finance.

Graph: April 2021 debt rollover – IIF,

Graph: Monthly debt maturity -% of GDP,

“It’s a big number, and if people want to reduce their exposure a little bit for whatever reason, that’s a significant amount,” said Sergi Lanau, deputy chief economist at the Washington-based Institute of International Finance (IIF).

“It’s not a good situation, but it would be much worse if it was foreign debt. We don’t really care about a bunch of maturity. If something goes wrong at that time, then you will be exposed, ”he said.

The IIF analysis shows that the government’s domestic debt maturing in April amounts to 3.7% of GDP, also an all-time high for a month.

Economy Minister Paulo Guedes said he saw “no problem” for the Ministry of Finance to reimburse the debt. About half of the 600 billion reais due early next year may already be covered by cash inflows from central banks and public sector banks, he said.

STEP CURVE

The government’s surprisingly aggressive fiscal response to the pandemic, particularly through direct income transfers to the poor, has driven its deficits and debt to records that are far above most other developing economies.

Brazil’s main deficit, excluding interest payments, is estimated at nearly 12% of GDP this year, with overall debt rising to around 95% of GDP, according to the government.

That has forced the Treasury Department to borrow more, more and more in short dated paper because it’s cheaper and as growing concerns around the fiscal outlook mean investors are reluctant to lend to the government long-term loans.

While reducing average long-maturity debt and posting low official interest rates has brought average interest costs down to a record low, the so-called “roll over risk” for the Treasury has increased sharply.

“The problem is if we can’t sell any bonds. But we don’t need to worry too much, there is money in the system, ”said an interest rate specialist at a hedge fund in Sao Paulo.

“The treasury won’t run out of cash: that’s not the case. But it will continue to pay higher rates and see a steeper curve, “he said.

The difference between long-term and short-term interest rates has widened sharply. Before the pandemic, the difference between the January 2022 and January 2027 futures rates was 180 basis points or less. That tripled to 460 basis points in September, and is now creeping back to that all-time peak.

Chart: Brazil interest rate spread,

The Treasury has failed to sell the full allocation of bonds offered at several auctions in recent weeks, both the fixed rate ‘LTN’ note and the floating rate ‘LTF’ note linked to the central bank’s official Selic rate.

To attract buyers, the Ministry of Finance has to pay a higher premium. It also relies on other sources of financing, including a recent transfer of 325 billion reais from the central bank.

Waldery Rodrigues, special secretary for the economy ministry, said last week that a central bank selling part of its foreign currency reserves to pay debt is “on the menu” for next year, although the decision is in the hands of the central bank.

Reporting by Jamie McGeever; Edited by Tom Brown

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Brazil’s Bolsonaro will not rule out more payments for pandemic assistance | Instant News


BRASILIA, November 24 (Reuters) – Brazilian President Jair Bolsonaro on Tuesday told supporters that he did not rule out extending emergency pandemic aid payments to Brazilians past the end of the year, a move that has proven popular with Brazil’s poor, but not among investors.

“We are preparing everything, but we have to wait for certain things to happen,” said Bolsonaro outside the presidential palace in Brasilia, when asked about the possibility of extending the payments, designed to help Brazilians deal with the economic impact of the coronavirus. pandemic.

“I hope it is not necessary because the signs are pointing to the economy taking off and we are not going to put a new lockdown on Brazil,” he added.

In the first months of the pandemic in Brazil, the government offered an aid payment of 600 reais ($ 112) per month, which was reduced to 300 reais per month starting September.

The payments increased Bolsonaro’s popularity, while also worrying many government officials and investors about deteriorating government finances.

$ 1 = 5.37 reais Reporting by Ricardo Brito; Written by Gram Slattery; Edited by David Gregorio

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The total number of deaths from Brazil’s coronavirus stands at 170,000 | Instant News


FILE PHOTO: Medical personnel treating patients in the intensive care unit (ICU) of the Nossa Senhora da Conceicao hospital, during the coronavirus disease (COVID-19) outbreak, in Porto Alegre, Brazil, 19 November 2020. REUTERS / Diego Vara

RIO DE JANEIRO (Reuters) – Brazil registered an additional 31,100 confirmed cases of the new coronavirus over the past 24 hours and 630 deaths from COVID-19, the Health Ministry said Tuesday.

The South American country has now registered 6,118,708 cases since the pandemic began and the official death toll has risen to 170,115, according to ministry data.

Reporting by Gram Slattery; Edited by Brad Haynes

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The death toll from the coronavirus in Italy surpassed 50,000 after recording another 630 deaths | Instant News


The death toll from the coronavirus in Italy surpassed 50,000 after recording another 630 deaths with another 22,930 new cases

  • Italy joins the US, Brazil, India, Mexico and the UK in passing the 50,000 death toll
  • Nearly a third of Italy’s deaths have been recorded since early September
  • The second wave of deaths, however, remains much lower than the first wave
  • Italy recorded 750 in one day last week – the record stood at 969 on 27 March

Italy‘s corona virus The death toll jumped past the 50,000 threshold after recording another 630 deaths on Monday.

Only the United States, Brazil, India, Mexico and the UK have also surpassed grim milestones.

Fifteen thousand Italian deaths, or nearly a third, have been recorded since early September amid a second wave that is biting harder than among many of its European neighbors.

As well as the deaths, another 22,930 infections were registered today, bringing the total to more than 1.4 million since the pandemic started there in late February.

There were 630 deaths from Covid-19 in Italy as of Monday, compared with 544 recorded last Monday

Another 22,930 infections were registered today, bringing the total to more than 1.4 million since the pandemic began in Italy in late February.

Another 22,930 infections were registered today, bringing the total to more than 1.4 million since the pandemic began in Italy in late February.

EUROPEAN COUNTRIES WITH THE MOST DEATH PER DAY

ITALY: 656

FRANCE: 598

POLAND: 469

KINGDOM OF ENGLAND: 441

RUSSIA: 436

* Average of last seven days

The lockdown that punished all of its 60 million residents kept the first outbreak under control but, as elsewhere, the number of cases has risen sharply in recent months.

Deaths have followed, with more than 750 recorded in one 24-hour period last week.

The seven-day death toll from the coronavirus in Italy is the second worst in the world with 656 people after the United States, which had an average of 1,502 deaths.

This compares to a seven-day average of 598 deaths per day in France, 469 in Poland, 441 in Great Britain and 436 in Russia.

However, the death toll still lags behind the incredible death toll that rocked Italy at the height of the pandemic – 969 deaths is the worst daily toll on record, as of March 27.

The Italian government has been trying to avoid another lockdown after crippling the economy, focusing on regional restrictions in addition to a national curfew.

Officials say the measures, which include the closure of bars, restaurants and shops in the worst-affected areas.

A Red Cross ambulance at Galliera Hospital arrives with a Covid-19 patient in Genoa, Italy, November 23, 2020. Italy is struggling to curb its spread in the second wave of the Covid-19 pandemic.  EPA / LUCA ZENNARO

A Red Cross ambulance disembarked a covid-19 patient at Galliera Hospital in Genoa, Italy, on Monday

But medics warned of continuing pressure on the intensive care unit, as although the number of beds had increased, there was a shortage of qualified staff.

Prime Minister Giuseppe Conte said last week that Italians should expect a calmer Christmas, without the Christmas Eve meetings, hugs and kisses.

“Otherwise, we will pay for it in January with more deaths.”

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