BRASILIA (Reuters) – Brazil President Luiz Inacio Lula da Silva on Wednesday said the proposal for a new fiscal framework prepared by Economy Minister Fernando Haddad will be announced before their trip to China next week.
“I haven’t seen it yet. I had a first talk with Haddad, and he was going to prepare it. As soon as he gets it ready I will see it,” said Lula as he left a lunch with the navy’s high-ranking officials.
“It must be before the trip, even because Haddad will travel with me.”
The new fiscal rules are eagerly awaited by investors after Lula secured Congress approval for a multi-billion spending package that bypasses the constitutional cap to meet campaign promises.
Haddad has indicated that new rules would likely be a key measure to balance revenues and expenditures and create space for reducing interest rates, as the country’s benchmark rate sits at a six-year high of 13.75%, which has been repeatedly criticized by Lula for raising borrowing costs.
Earlier, Haddad said his proposal was now “at the presidential palace,” but did not provide further details.
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Haddad on Tuesday presented the proposal to Vice President Geraldo Alckmin and said Alckmin had a “very good” reaction to the plan.
His remarks to reporters in Brasilia came after CNN Brasil reported he had delivered the framework to Lula, a key step for the proposal to go forward as Haddad previously said Lula would have the final word on it.
(Reporting by Victor Borges and Lisandra Paraguassu; Writing by Gabriel Araujo; Editing by Aurora Ellis)