Brazil to ease foreign land ownership cap as part of stimulus -source

jueves 21 de julio de 2016 08:53 GYT
 

By Lisandra Paraguassu

BRASILIA, July 21 (Reuters) - Brazil's government plans to include steps to ease restrictions on foreign ownership of agricultural land in a package of measures to resuscitate the recession-stricken economy, a senior government official told Reuters.

Apart from easing the restrictions that former President Luiz Inácio Lula da Silva introduced in 2010, the government wants to expand regional airports and pursue state-funded public works, said the official, who asked for anonymity to discuss the plans freely.

The package would also include instructing state-controlled banks to increase loans to small- and mid-sized companies to generate more jobs, the official said, adding that the lenders' capital position poses no immediate concern.

The policies, a combination of regulatory and investment promotion steps, underscore how interim President Michel Temer plans to reverse two years of economic decline.

The Senate will decide late next month whether to dismiss President Dilma Rousseff, whose erratic policies plunged Brazil into the worst recession in eight decades.

Rousseff was replaced by Temer, her vice president, in May, pending the impeachment trial, in which senators are widely expected to vote for her permanent removal.

In recent weeks, Brazilian equities, bonds and currency rallied on the prospect for Rousseff's impeachment and the election of a Temer ally to preside over the lower house of Congress - marking a victory for a government seeking to approve unpopular economic reforms. (Writing by Guillermo Parra-Bernal; Editing by Daniel Flynn and Chizu Nomiyama)