Brazil’s Treasury secretary, Rogério Ceron Durigan, said the interest payments the government currently makes on its debt are too high and need to come down, according to UOL Economia. He described the current level of interest costs as unacceptable, the outlet reported on Wednesday.
Durigan argued that reducing these payments is a priority, tying the issue to the broader challenge of managing the country’s public debt. UOL Economia reported that he believes the government must lower the cost of its borrowing to put the fiscal outlook on a more sustainable path.
The comments were made as part of a wider discussion about Brazil’s fiscal policy. Durigan also said that controlling mandatory spending is essential to show the market that such outlays will not grow without limits, according to Correio do Povo. He added that the country needs to revisit the topic of privileges in the pension system, UOL Economia reported.
In a separate report, O Globo noted that Durigan is betting on slower growth in government spending as a way to reduce both interest rates and the overall debt burden. The strategy appears to center on curbing the expansion of automatic expenditures rather than relying on new revenue measures.
The Treasury secretary’s remarks come at a time when investors are closely watching Brazil’s fiscal trajectory. High interest payments have been a persistent drag on the government’s accounts, and the debate over how to address them is likely to continue in the coming months.
What to watch next: Whether the government can translate Durigan’s statements into concrete policy changes that lower borrowing costs without stalling economic growth.
