Investor Presentaiton
70%
65%
60%
55%
50%
45%
40%
35%
30%
Dec-06
Feb-07
Apr-07
Source: Brazilian Central Bank
External Solvency Indicators
Consumption/employment provide support for demand
2002
2009
International Reserves (USD bn) - liquidity
37.8
239.1
International Reserves (USD bn) - cash
238.5
External Debt expiring in the next 12 months (USD bn) 1
58.6
52.8
External Debt expiring next 12 months / Reserves (cash)
155%
22%
External Debt/ Reserves (cash)
557%
85%
External Debt / Exports
349%
132%
External Debt Services / Reserves
131.9%
18.4%
1) Includes amortizations of medium and long term debt expiring in the next 360 days.
Source: Brazilian Central Bank
Evolution of Public Debt
Jun-07
Aug-07
Oct-07
Net Public Sector Debt/GDP
Gross Public Sector Debt/GDP
Dec-07
Feb-08
Apr-08
Jun-08
Aug-08
Oct-08
Dec-08
Feb-09
2 Apr-09
Jun-09
Aug-09
Oct-09
Structurally Resilient
A resource rich country, with a closed economy;
exports=14% of GDP, and diversified in
geographical terms;
Strong external solvency ratios and floating FX
regime prevent speculation against the BRL;
Household consumption is 61% of GDP;
government consumption is 20%;
Banking system well capitalised and regulated;
credit market funded by BRL liabilities;
Still an underleveraged economy; 2008
credit/GDP= 42% vs 81% in Chile and 226% in the
US;
Mortgage volumes are very small compared to the
economy, at circa 2% of GDP;
Fiscal results in good shape despite recent
deterioration, which translated into a rise of
debt/GDP.
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