Brazil adopts single standard for fiscal risk

The federal government started to use new parameters, similar to private-sector ones, to classify legal liabilities as “fiscal risks” that could cause unlikely, possible and probable losses – the Treasury has to set aside reserves to cover the last ones. Officials say the change aims to create transparent criteria for lawsuits against the federal government and its bodies. Before, every sector classified the risk according to its own interpretation. Last year’s budget had 49 issues that could result in R$838.1 billion in liabilities, while this year the number fell to 12 with R$662.9 billion in potential liabilities.

valor.com.br

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s


%d bloggers like this: