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Brazil's financial industry needs to break with a "vicious cycle" that has prevented long-tern investment projects from getting more funding than short-term activities, such as consumption, a finance ministry official said on Wednesday.
At an event sponsored by Cetip SA Mercados Organizados , Dyogo de Oliveira, deputy undersecretary of Brazil's finance ministry, said investors and banks need to facilitate the funneling of more funds into investment by curbing the market's predilection for liquid investments.
The government has been doing its part by stretching out maturities for its debt, increasing sales of fixed-rate and inflation-linked debt and channeling more money towards investment, he noted.