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As Dilma Rousseff takes the mantel of Brazilian presidency for the next 4 years, the positive news with regards to the general growth of the country continues.  A prime example of this was the further south-eastern offshore oil findings that have been estimated to be potentially the biggest discovery in the Western Hemisphere in over three decades.  It was also reported that as a result of September’s initial capitalisation of Petrobras, the country’s public debt had witnessed a decrease of 3 percent (to R$ 1.4 trillion).  Whilst not attending the G-20 meeting in South Korea, Economic Minister Guido Mantega announced Brazil’s participation in an agreement with US Treasury Secretary for both countries to lead a discussion on the ‘currency war’ and the need to adopt multi-lateral measures to avoid further volatility, stating: “we want the G-20 to publicly state that we will act together. That will show the world that a joint solution can be more effective than individual solutions.”  Amongst criticism from some commentators that the SELIC rate of interest should be increased (it was held at 10.75 percent) Mantega counteracted the argument with regards to an overheating economy stating: “things are moving at a very satisfactory pace, such that the use of installed industrial capacity has diminished and inventories have risen – there isn’t inflation pressure from the point of view of demand.”

In real estate related news, MRV – one of the country’s largest developers reported a third quarter gross revenue of R$ 1.032 billion representing a 58.7 percent increase compared to the same period in 2009.  Whilst the Banco do Brasil announced their attention to offer house re-mortgaging options and Bradesco announced a historically high third quarter profit level, news from consumer assistance group IBEDEC reported an increased amount of assistance need for people falling into mortgage debt with José Geraldo Tardin, president of the organisation stating: “the arrears are inevitable and financial firms profit from it, charging interest as well late penalty charges knowing that sooner or later that they will be protected in the eyes of credit protection laws.”

Download: October / November 2010 Brazil Real Estate and Land Investor Newsletter