The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.


All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.

Brazil: Investors confident despite political scandals

Lula remains favourite for second term

 Lula: under pressure

Most Brazilians are transfixed by their country's political crises but international investors are rather more sanguine. The majority remain bullish about Brazil's prospects, despite scandals that have engulfed senior members of the governing Workers Party (PT). Four of president Luiz Inacio Lula da Silva's closest aides, including Jose Genoino, one of the PT's founders, have resigned after allegations that they bribed members of congress in return for votes. One party worker was even found with $100,000 in dollar bills stuffed down his underpants. The president has responded by reshuffling his cabinet and appointing three members from the centrist Democratic Movement party, so weakening the PT party's influence within the governing coalition.

Although none of these scandals directly implicates Lula (at least for the time being), they have emerged at exactly the wrong time for him. Next year there is a presidential election and although Lula remains the favourite to win a second term in office, he might find his mandate is restricted if the allegations continue. That, in turn, could limit his reform agenda.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree