Brazil Says It Plans to Drop Lft Debt From Fgts Fund Holdings
January 16, 2012, 3:12 AM ESTBy Andre Soliani and Matthew Bristow
Jan. 13 (Bloomberg) -- Brazil plans to eliminate floating- rate bonds from a government-managed workers’ fund this year, stepping up effort to wean local investors off notes linked to the overnight loan rate, Treasury Secretary Arno Augustin said.
The fund, known as FGTS, will swap its Selic-linked bonds for fixed-rate and inflation-linked bonds, Augustin said in an interview at his office in Brasilia today. FGTS held more than 30 billion reais ($16.7 billion) of LFT floating-rate bonds as of Dec. 31, 2010, according to the most recent statement posted on its website.
To contact the reporter on this story: Andre Soliani in Brasilia at asoliani@bloomberg.net
To contact the editor responsible for this story: Adriana Arai at aarai1@bloomberg.net
