Brazil's Lula says fiscal deficit to shrink with higher revenues, lower rates

BY Reuters | ECONOMIC | 06/12/24 09:24 AM EDT

June 12 (Reuters) - Brazil's President Luiz Inacio Lula da Silva said on Wednesday that the country's fiscal deficit reduction will be achieved through increased revenues and lower borrowing costs, without affecting public investments.

"We are getting our house in order and putting public finances in check to ensure fiscal balance," he said at an event hosted by the FII Institute in Rio de Janeiro.

"Increased revenue collection and lower interest rates will allow for deficit reduction without undermining public investment capacity." (Reporting by Lisandra Paraguassu and Marcela Ayres; editing by Gabriel Araujo)

In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

fir_news_article