Dec 15, 2011

Brazil: Expenses with Interest Rate on Public Debt

For several years Brazil has maintained one of the highest interest rates in the world. This interest rate has a very high cost to Brazilian Treasury. Over the last 12 months ending in October, the payment of interest had a cost of 5.87% of GDP, despite the downward trend. The expenses with interest was almost 10% in 2003, as we see in the chart below.



Source: Central Bank of Brazil

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