Brazil’s Central Bank is bullish on the country’s recovery prospects. But should it be? Plus, big moves in the telecom sector. And banks propose action in the Amazon.
BREAKING
Police in Rio de Janeiro launched an operation to arrest five people in connection with embezzlement in overpriced contracts between health organization Iabas and the City Hall of Rio de Janeiro. Iabas is also under investigation for irregularities in the installation and management of the city’s Covid-19 field hospitals.
Recovery: Beware of the ‘false V’
Central Bank Chairman Roberto Campos Neto said during a live webcast that the Brazilian economy is showing promising signs and that a V-shaped recovery is a real possibility — even if it is not a “full V.” According to him, the bank’s forecast of a 6.4-percent plunge of Brazilian GDP this year is overly conservative, adding that access to credit will be a key factor in the recovery. “We have made enormous efforts to keep credit flowing,” he said.
- Since reaching historic lows in April, confidence among Brazilian businessmen has climbed back to levels that are closer to the pre-pandemic mood.
But, but, but … The economic recovery depends on stopping — or at least controlling...