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Jun 28, 2012, 08:51:11 AM
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Brazil unveils stimulus, cuts BNDES lending rate

 

Brazil's President Dilma Roussef attends a ceremony commemorating the 147th anniversary of the Naval Battle of the Brook, in the Grouping of the Marine Corps in Brasilia June 11, 2012. REUTERS/Ueslei Marcelino/Files

Brazil's President Dilma Roussef attends a ceremony commemorating the 147th anniversary of the Naval Battle of the Brook, in the Grouping of the Marine Corps in Brasilia June 11, 2012.

Credit: Reuters/Ueslei Marcelino/Files

 

BRASILIA | Thu Jun 28, 2012 1:35pm IST

(Reuters) - Brazil unveiled a new round of stimulus measures on Wednesday, pledging to boost government purchases and lower subsidized lending rates for companies in another bid to revive a struggling economy.

The new measures, which call for an increase in government purchases this year of 6.6 billion reais, are part of a broader push to shield Brazil from the slowing global economy and the European debt crisis.

"Brazil will take all the necessary measures to protect production and jobs in our country," President Dilma Rousseff said in a ceremony outlining the new measures. "We have the resources to find a path to keep growing."

The Rousseff administration has unveiled a flurry of stimulus measures and targeted tax breaks in recent months aimed at reviving the Brazilian economy, which grew a meager 0.2 percent in the first quarter from the previous quarter and is struggling to regain its footing.

All the measures taken so far have highlighted Rousseff's penchant for state-led economic growth. Be it through tax incentives for key industries or increased lending by state-controlled banks, the government plays a leading role in Brazil's economy, which surpassed Britain's last year to become the world's sixth-largest. 



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