Brazil's government is contemplating a securitization for asmuch as 60 billion Brazilian reais of its debt to generate funds and lower itsbudget deficit, Reuters reported, citing acting Planning Minister DyogoOliveira.
The exact amount will be decided after the governmentdiscusses the matter with federal audit court TCU.
Meanwhile, a congressional committee has endorsed interimBrazilian President Michel Temer's 2017 primary budget deficit target of 139billion reais, which will mark the fourth consecutive year in which the countryposts an annual primary deficit, the newswire reported separately.
According to a planning ministry document, the governmentanticipates collecting an additional 8 billion reais in revenue during 2017 asa result of tax hikes and the levying of new duties. The document did notspecify which taxes might be raised, Reuters reported.
These developments come at a time when Brazil isexperiencing a severe recession,further compounded by political instability as suspended President DilmaRousseff faces impeachment.
As of July 14, US$1was equivalent to 3.23 Brazilian reais.