Brazilian debt numbers reviewed

Joaquim Moura (mailto:joaquim.moura@PERSOCOM.COM.BR)
Mon, 15 Feb 1999 12:43:11 -0300

Message-ID:  <36C8408E.FE773898@persocom.com.br>
Date:         Mon, 15 Feb 1999 12:43:11 -0300
From: Joaquim Moura <mailto:joaquim.moura@PERSOCOM.COM.BR>
Subject:      Brazilian debt numbers reviewed
To: mailto:DEVEL-L@AMERICAN.EDU

The numbers I gave in my latest message were slightly wrong... Sorry...
The numbers I gave as being in American dollars should be read as in
Brazilian reais (R$).
They used to have almost the same value, so I took one for the other.
But now, after the last January, we don't even know how much reais you
need to buy one dollar. Maybe you need two reais, or slightly less (R$
1,96). An almost 100% devaluation... So, the figures I gave, for 1999
Brazilian federal budget, must be read in reais - although many of these
expenditures - mainly the financial ones - will increase their value in
reais to match their former values in dollars. More: the IMF is
demanding that Brazil raises the interests it pays for its debt from the
current 45% per year to 60%... (and keep cutting its social
expendintures)
So, again - and pasted directly from the official 1999 budget site:
http://www.mpo.gov.br/sof/index.htm

Debt payment (Amortização da Dívida) R$ 295,098,906,284 Debt Interests and services (Juros e Encargos da Dívida) R$ 50.323.029.069 A big parcel of this amount will be reborrowed by the country, which pays around 50% per year for it. Now, please compare these financial expenditures with the "social" expenditures. (I am not including the vanishing expenditures with environment, indians etc.; just the main conventional social expenses)

Federal Personnel Expenditures: Total: 52,170,600,000 (Working force (Ativo): R$ 27,665,711,416) (Retired people (Inativo) R$ 24,504,888,584) Education: R$ 10,927,613,028 Health: R$ 18,993,627,521 Population social security, public health and retired people: R$ 64,686,118,089

About violence in Sao Paulo, I hope you understood what I have meant to say: 90 people murdered in 48 hours, last weekend. It is our record, but increasing... How many people were killed in your city, last weekend?? So you may compare and understand what I mean... Thanks, Joaquim