UPDATE 5-Brazil next finance chief pledges balanced growth, fiscal discipline

jueves 27 de noviembre de 2014 16:36 GYT

(Adds comments from incoming minister, background)

By Alonso Soto

BRASILIA Nov 27 (Reuters) - Brazil's incoming finance minister Joaquim Levy vowed to cut spending and clean up the country's finances on Thursday, aiming to rebuild trust with investors after years of weak growth and erratic economic policies.

In his first public comments after President Dilma Rousseff announced his appointment, Levy laid out more realistic fiscal targets and promised more balanced economic growth in Rousseff's second term following her re-election victory last month.

"We are not in a moment of crisis, so it is important to lay the basis for the next few years," Levy told reporters, transmitting confidence and fluency with a federal budget he shaped at the Treasury a decade a decade ago.

"We are not in a hurry to announce measures. We are looking at reducing spending. There will be no package of measures, there will be no big surprises."

The benchmark Bovespa stock index reversed losses as Levy began his remarks, but swung back into negative territory as he explained there were no immediate measures forthcoming.

Levy helped Brazil win an investment-grade credit rating when he was the head of the Treasury between 2003 and 2006, at the start of a decade-long boom that turned Brazil into an emerging-market powerhouse.

Since Rousseff became president in 2011, however, her leftist government has used accounting tricks and transfers from a sovereign wealth fund to meet fiscal targets, eroding its credibility with investors and credit rating agencies.   Continuación...