Brazil Investor Presentation

1
Brazilian Federal Public Debt

Investor Presentation
July – 2022
2022 July
2
Brazil

The largest economy in Latin America
12 th largest GDP in the world
(USD 1.4 trillion in 2020)
6 th largest population
(212 million in 2020)
5 th largest country by area

(8,515,767 sq km)
11 thFDI host economy

(USD 24.8 bn in 2020)
July – 2022
GDP per capita USD 6,796
(2020, current prices)
Sources: World Bank and UNCTAD
3

1 Macroeconomic Outlook
2 Structural Reforms
3 Public Debt in Details
July – 2022
Where is Brazil? 4
Strengths: strong external position, and a significant flow of FDI

External Vulnerability Indicator (average 2022)1 Current Account Balance x FDI (USD bn)
350
Current Account FDI
BRICS Emerging Markets
300
250 102 93
75 88 78
65 74 69 69 70 71 71
57 61
200 38 46
150 -24 -22 -24 -28 -18 -31

289,4 -40 -40 -44
-55 -51
-76 -65
100 208,4 -84 -80
-102
138,7
50 103,8
39,7 34,2 53,6 56,2 43,4
0
2013
2017
2011
2012
2014
2015
2016
2018
2019
2020
2021
2022
2023
2024
2025
2026
Brazil Russia* India China South Mexico Turkey Argentina Chile
Africa
Source: Moody’s,forecast for2022, except Russia2020 Source: CentralBank(FOCUS –July15th,2022)
➢ Meaningful international reserves and low public external debt.
➢ Current account deficits have been fully financed by flows of FDI.
July – 2022
1 The ratio is defined as the stock of official foreign reserves at the end of year t-1 as the denominator, and the residual maturity short-term debt (including original maturity short-term debt and
principal payments on long-term debt) falling due in year t, as the numerator
5
Where is Brazil?
Challenges to overcome

GGGD/GDP (2022 Forecast) General Government Interest Payment / Revenues (2022 Forecast)
BRICS EM BRICS EM
89,8 30,1
78,3 76,9
72,1 73,0 23,9
65,5
16,3 17,5
47,1
40,5 36,7 11,6 11,4
19,3 5,3 4,3
2,5 2,4
Brazil Brazil* Russia China India South Turkey Chile Mexico Argentina Brazil 2015 Brazil Russia India China South Mexico Turkey Argentina Chile
2015 Africa Africa
Source: S&P Ratings (Dec 2021). * National Treasury Forecast (Jun 2022) Source: S&P Ratings (Dec 2021)
July – 2022
Sources of fiscal unbalance before COVID-19 crisis 6

Primary Result, Net Revenue and Total Expenditure – Central Government Expenses
25,0
Forecast (% GDP) 26,1 26,0
(12-months – May/2022 prices, BRL billion)

20,2 340
21,0
18,8 18,8 19,0 18,9 18,6 18,9 18,5 18,7 19,4 19,9 19,4 19,3 19,5 2.200
18,1 18,6 18,4
18,0
20,0
17,8
17,4 18,1 2.000
16,0
17,117,0
16,4
290
15,9 15,1 15,6 1.800 1.673
18,2 17,7 17,4 17,4 17,5 17,5 18,2 18,2 17,7
17,2 17,316,7
11,0
15,0
16,8 16,9 16,2 17,4 16,8 16,9 17,3 16,2 1.600 240
2,1 2,3 2,5 2,4 2,0 2,1 2,8 1,2 2,0 2,1 1,5 1,4
6,0
10,0
0,3 1.400 1.569
1,0
190
1.200
-0,4 -0,4 -0,7 -0,6 -0,2
-2,0 -2,6 -1,9 -1,8 -1,3 142
-4,0
1.000
140
5,0
800
-9,0
0,0
-10,0 -14,0
600 90
2011
2022
2002
2003
2004
2005
2006
2007
2008
2009
2010
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2023
2024
2025
Primary balance Net revenue Total expenditure
Mandatory spending Mandatory ex covid Discretionary spending
Source: National Treasury, Brazilian Central Bank
Source: National Treasury
➢ Before the COVID-19 crisis the main pressures from public spending came from the pension systems deficit and payroll.
➢ Primary spending, which increased throughout the pandemic, has returned to pre-pandemic levels.
July – 2022
➢ Structural fiscal reforms such as the spending cap and the social security reform have supported the fiscal adjustment.
Social Security – Special Social Welfare Policy (RPPS) and 7
General Social Welfare Policy (RGPS) – (% GDP)

0,00%
-0,52%
-0,50%
-1,00% -0,67%
-1,50%
-2,00%
-2,60%
-2,50% Private Sector Workers
-3,00% Private Sector Workers (Ex-Social Security Reform)

-2,92%
Civil Servants
-3,50%
Civil Servants (Ex-Social Security Reform)
-4,00%
July – 2022
Source: National Treasury and IBGE.
➢ The pension reform demonstrates a significant impact in the trajectory of social security spending.
Social Security Benefits – General Social Security System (% GDP) 8

8,89%
8,46% 8,37% 8,48% 8,18%
8,10% 8,07%
7,27%
➢ The reform has contributed to the

reduction in the pace of expansion of
expenditure on social security
benefits.
2015 2016 2017 2018 2019 2020 2021 2022
2022: LOA 2022
July – 2022
9
Personnel Expenses – Number of active civil servants in the

Civil Executive Branch*
562.264
590.843
494.752
493.272
493.422
507.204
517.998
536.114
534.233
545.241
580.352
585.119
602.695
624.095
627.427
632.485
634.157
630.689
607.833
599.852
583.674
571.125
July – 2022
Source: Painel Estatístico de Pessoal (dez/2021).
* Does not include Central Bank’s and Brazilian Intelligence Agency’s servants.
Personnel Expenses – Active and Inactive (% GDP) 10

4,5%
4,2%
4,2% 4,0%
4,2% 4,2% 4,1%
4,0%
3,9%
Current spending and forecast
Growth pace 2015-2018 (7.5 % per year) 3,6%
3,4%
2015 2016 2017 2018 2019 2020 2021 2022

Source: National Treasury and LOA 2022.
➢ Reduction in personnel expenses with active and inactive personnel results from the effort to
optimize expenses
July – 2022
➢ Complementary Law No. 173/2020:
➢ Prohibition of salary increases for public servants for 2 years
➢ Prohibition of salary readjustments paid in installments after the end of the administrative
mandate
Fiscal adjustment in Brazil has occurred through reduced spending 11

Government Spending (%GDP) – Brazil's position in relation to
the world's 50 largest GDP
37 36 36 36
35 34 34 34
33
33 32 32 32 32
31 31 31
31 30 30 30
29 29 29
29
26
27 26
25
Source: IMP - WEO Oct/21.
July – 2022
➢ Even during the pandemic, strong commitment to long-term
fiscal adjustment
Covid-19 impact on the IRS revenues 12

IRS Revenues
(BRL billion - 12-month accumulated values- inflation-adjusted)
1.400
1.350
1.300
1.250
1.200
1.150
1.100
1.050
1.000
➢ Revenue managed by RFB, except for RGPS, a 12-months moving average, fell -11.21%, in real terms
July – 2022
between January and August 2020 and since then shows a recovery of 31% up to May 2022
➢ A meaningful share of this impact comes from measures related to taxes deferments
13
The COVID-19 impact on growth was meaningful (market forecasts)

Real GDP Growth
7,5
5,8 6,1
5,1
4,6
4,0 4,0
3,1 3,2 3,0
1,9 1,8 2,00 2,00
1,4 1,1 1,3 1,2 1,20
0,5 0,76
-0,1
-3,5 -3,3
-3,9
2022*
2023*
2024*
2025*
2007
2018
2001
2002
2003
2004
2005
2006
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2019
2020
2021
July – 2022
➢ The economic growth has been recovering as of COVID-19 shock
14
Accumulated GDP growth between 2020 and 2021

Accumulated GDP -- 2020 and 2021
13.0
10.6
3.1
Average G20 1.7 1.9 2.0
0.6 1.1
0.6 1.0
-0.9 -0.7
-1.3 -1.0
-2.1 -2.0 -1.8
-3.0 -2.9
-3.3 -3.3
July – 2022
Source: World Economic Outlook, FMI, 2022
15
Investments rebound

% GDP (YoY)
GFCF/GDP
19,0
Savings/GDP 17,8
14,6
12,2
July – 2022
Source: National Bureau of Statistics (IBGE)
16
Consolidated public sector primary
balance back on upward trend after

extraordinary deficit of 2020 Primary Nominal Gov.
Forecasts
3.7 3.7 3.3
3.2 3.2 3.2
With the fiscal anchor in the 1.9
2.6 2.9
2.2 1.7
0.8
spending cap, the revenue recovery
translates into a better primary -0.6
-1.9 -1.7 -1.6
-0.8 -0.9
-1.6
-1.0
-2.0 -2.4 -2.5 -2.3 -2.5
balance
% GDP
-2.9 -2.7 -3.2 -3.0
-3.5 -3.6
-4.4
-5.2 -5.4
-6.0 -5.8
-7.0 -6.8 -6.7
-7.8
-9.0 -9.4
-10.2
-13.6
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
Source: Central Bank.
Projections: LOA 2022.
2019 2020 2021 2022 2023 2024
Primary Balance Target (BRL Actual (BRL Target (BRL Actual (BRL Target (BRL Actual (BRL Primary Balance
BRL bn % GDP BRL bn % GDP BRL bn % PIB
bn) bn) bn) bn) bn) bn)
July – 2022
Central Government -139,00 -88,89 -124,10 -745,27 -139,40 -35,87 Central Government -66,90 -0,69 -144,97 -1,52 -102,20 -1,00
State-owned companies 3,50 11,83 -3,81 3,57 -1,40 2,91 State-owned companies -2,60 -0,03 -4,75 -0,05 -5,08 -0,05
Subnational Government 10,50 15,19 9,00 38,75 39,50 97,69 Subnational Government -2,60 -0,03 -0,10 0,00 1,50 0,01
Public Sector -132,00 -61,87 -118,91 -702,95 -101,30 64,73 Public Sector -72,10 -0,74 -149,82 -1,57 -105,78 -1,04
Source: BCB. Forecasts: ME, LOA 2022 (2022) LDO 2022 (2023 and 2024).
The projections are based on a real GDP growth of 1.5% in 2021, and 2.5% in 2023 and 2024.
Forecasts for the General Government Gross Debt (GGGD) and 17
the Public Sector Net Debt (PSND)

100 GGGD
PSND 88,6
90
80,3 78,6
78,3 76,8
80 74,4
69,9
Percentage of GDP
70 65,5
60 64,9
51,5 62,5 63,7
59,9 60,9
50 57,2
51,4 52,8
40 46,1
30 35,6
30,5
20
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
Average
Parameters 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031
2022-2031
Exchange rate - year-end (BRL/USD) 5,58 5,00 5,04 5,00 5,02 5,08 5,12 5,15 5,17 5,17 5,17 5,09
Real GDP Growth (annual %) 4,5 1,5 2,5 2,5 2,5 2,5 2,2 2,2 2,2 2,2 2,1 2,24
GDP Deflator (annual %) 11,5 10,2 6,4 4,8 4,4 4,4 4,1 3,8 3,6 3,4 3,2 4,83
CPI ( annual %) 10,1 7,9 3,6 3,0 3,0 3,0 2,7 2,5 2,2 2,0 2,0 3,19
July – 2022
Selic rate, average (annual %) 4,3 12,2 11,3 8,1 7,1 6,9 6,5 6,0 5,5 5,0 4,9 7,35
Selic rate, year-end (annual %) 1,9 13,2 9,2 7,4 6,9 6,9 6,4 5,9 5,4 4,9 4,9 7,1
Public Sector Primary Surplus (% GDP) 0,75 -0,10 -0,30 0,20 0,70 1,20 0,80 1,50 1,80 2,10 2,40 1,0
Interest, Public Sector Net Debt (% GDP) 5,2 6,4 6,6 5,9 5,5 5,4 5,2 4,9 4,6 4,3 4,1 5,3
Source: Macroeconomic parameters - Economic Policy Secretary, Ministry of Economy (May/21). Fiscal parameters: 2022 - Annual Budget Law 2022; 2023-2030 -National Treasury.
18
Brazilian Sovereign Rating Performance and CDS

S&P CDS Brazil Rating History
600
BBB stable
BBB negative
BBB- positive
500
BBB- stable BBB- stable Investment grade (BBB-)
BBB- negative
BB+ positive
BB+ negative 400

BB positive
BB stable
BB negative
BB- positive BB- positive BB- stable 300
BB- stable BB- stable
200
100
0
Jul/04
Jul/05
Jul/06
Jul/07
Jul/08
Jul/09
Jul/10
Jul/11
Jul/12
Jul/13
Jul/14
Jul/15
Jul/16
Jul/17
Jul/18
Jul/19
Jul/20
Jul/21
Jul/22
Jan/05
Jan/06
Jan/07
Jan/08
Jan/09
Jan/10
Jan/11
Jan/12
Jan/13
Jan/14
Jan/15
Jan/16
Jan/17
Jan/18
Jan/19
Jan/20
Jan/21
Jan/22
July – 2022
Source: S&P and Bloomberg
19
Main Macroeconomic Figures and Market Forecasts

for 2022-2026

07/15/2022 2020 2021 2022 2023 2024 2025 2026
Real GDP growth (% YoY) -3,88 4,62 1,75 0,50 1,80 2,00 2,00
Inflation - IPCA (% YoY) 4,52 10,06 7,54 5,20 3,30 3,00 3,00
CB Year-End Interest Rate (% YoY) 2,00 9,25 13,75 10,75 8,00 7,50 7,50
Year-End Exchange Rate (BRL/USD) 5,20 5,58 5,13 5,10 5,05 5,14 5,20
Current Account Balance (USD billion) -24,07 -27,93 -18,00 -30,60 -40,00 -40,39 -43,59
Foreign Direct Investment (USD billion) 37,79 46,44 57,20 60,50 70,00 70,91 71,40
Primary Balance (% GDP) -9,41 0,75 0,10 -0,20 0,00 0,40 0,30
Net Public Sector Debt (% GDP) 62,54 57,23 59,23 63,50 63,00 66,20 68,89
GGGD (% GDP) 88,59 80,27 79,00 81,84 83,59 84,82 85,60
Source: Central Bank. Projections FOCUS (July 15th, 2022).
July – 2022
20

July – 2022
Structural Reforms 21
✓ Spending Cap

Capping the growth of public spending to the inflation for 20 years
✓ Freezing the civil servants salaries
✓ Cannot hire new civil servants
✓ Cannot increase discretionary expenditures
✓ Social Security Reform

Savings of BRL 800 bn in 10 years
✓ Labor Reform
More flexibility for the labor market
✓ New Regulatory Framework for Sanitation

Universalization of water and sewage services by 2033 would require BRL 600 billion in investments.
✓ Constitutional Amendment Bill: Emergency (PEC 186)

Fiscal Framework (aligning current fiscal rules)
July – 2022
✓ Central Bank Independence
✓ Bankruptcy law
Structural Reforms – in Progress 22
✓ Income Tax Reform (approved by the Lower

✓ PL 7,063/2017 - Concessions and public-private
House);
partnerships;
✓ Administrative Reform;
✓ PL 3,729/2004 - Environmental Licensing (approved by
the Lower House);
✓ Bill 414/2021 - Regulatory Framework for the
Electricity Sector;
✓ PL 6726/16 – Deals with public servants’ salaries
(approved by the Lower House); and
✓ Bill 591/2021 - Privatization of the Post Office;
✓ Provisional Measure “Auxílio Brasil”

✓ Bill 3,178/2019 - Guarantees the National Energy
Policy Council the decision on which is the best
July – 2022
legal regime for exploration and production of oil
and natural gas to be adopted in the pre-salt
auctions; Fonte: Secretaria do Tesouro Nacional
Reform Agenda – Infralegal Scope 23
✓ Regulation of tax, financial, and credit benefits:

Definition of objective criteria, performance targets, and procedures for granting and amending them. Rules for mandatory
periodic assessment of economic and social impacts (art. 4, §4 of Constitutional Amendment 109/21).
✓ Regulation of the new tax framework focused on public debt (Constitutional Amendment 109/21):
Synergy between the budget pieces of all entities: calculation indicators and convergence trajectory. Adjustment measures and
asset sales planning (arts. 163, VIII; 164-A; 165, §2 of the Federal Constitution).
✓ Regulation of the Meeting of Accounts (Constitutional Amendment 113/2021):

Between the private sector and the public sector: payment of debts, grants, purchase of real estate, shares and rights (art. 100,
§11 of the CF);
Among federative entities: payment of various debts (Ibid, §21).
✓ Complementary Bill 295/16 (New Public Finance Law):
July – 2022
Modernization and improvement of Law 4,320/64 to reflect new operations and forms of state action.
Fonte: Secretaria do Tesouro Nacional

24
OECD Accession
53 Instruments
➢ Adds credibility to Brazil in the international environment

Ready to
accession Total: 251
enhancing the investments;
51
➢ Facilitating bilateral and multilateral agreements;
In
➢ Aligning the domestic regulation to international best analysis
104
practices; Adhered
➢ Brazil will play an active part in framing international rules;

➢ Incentives to speed up structural reforms.
Brazil is the non-member country with the greatest
convergence on OECD’s regulatory instruments
EU/Mercosur agreement
Announced on 06/28/2019
Benefits:
➢ Integrating Brazilian economy into global networks;

➢ Incentives to speed up domestic structural reforms;
July – 2022
➢ Expanding the opportunities of agriculture exports;
➢ Supporting the OECD accession ;
➢ The agreement show the Brazilian commitment to the Paris Agreement, 2030 Sustainable Development Agenda
and to the Fundamental Principles of the International Labour Organisation (ILO). Source: WB - http://datatopics.worldbank.org/esg/
New Regulatory Framework for Sanitation 25

Social challenge:
Almost 35 million Brazilians have no clean water supply.
Almost half of the population (about 100 million people) has no sewage collection.
In June 2020, the Congress enacted the new regulatory framework for basic sanitation.
Universalization of water and sewage services by 2033 would require BRL 600 billion in investments.
Currently, the private sector accounts for about 6% of the Brazilian sanitation market, but it has been responsible
for 20% of investments.
Characteristics which will also support the OECD
Benefits in: Through: accession and EU/Mercosur agreement
➢ Health ➢ Regulatory uniformity to the sector
July – 2022
➢ Education ➢ More competitiveness in the sector
➢ Productivity ➢ More private investments
➢ Tourism ➢ Better governance creating the Federal Interministerial Committee on Basic Sanitation (CISB)
Sustainable Development Goals: Brazil’s Performance
26

The 17 Sustainable Development Goals represent the most
comprehensive and audacious effort to improve quality of life,
eradicate poverty, and promote sustainable development.
The implementation of the 17 SDG goals requires a solid

framework of indicators to support policy planning across all
levels of government, to enable track progress and to ensure
transparency and participation of all stakeholders, including the
private sector and civil society.
July – 2022
Source: https://dashboards.sdgindex.org/static/profiles/pdfs/SDR-2021-brazil.pdf
27
SDG Dashboards and Trends: Brazil

On track or maintaining SDG achievement
SDG Achieved
July – 2022
Challenges remain Moderately improving
Significant challenges remain
Major challenges remain Stagnating
Trend information unavailable

28

July – 2022
29
Annual Borrowing Plan

Objective of Federal Public Debt Management
The goal of the Federal Public Debt management is to efficiently supply the borrowing needs
of the federal government at the lowest cost in the long term, respecting the maintenance of
prudent risk levels, and to contribute to the development of the Brazilian bond market.
Guidelines of Federal Public Debt Management
• Gradual replacement of floating rate • Yield curve development;

bonds by fixed-rate and inflation-linked
• Increasing federal public government
bonds
bonds liquidity on the secondary market;
• Smoothing the yield curve, with particular
• Broadening and diversifying the investors
attention to short-term maturity;
July – 2022
base;
• Increasing outstanding debt average
• Maintenance of the liquidity reserve
maturity;
above its prudent level.
30
Federal Public Debt (FPD) Statistics

ABP 2022 ranges
Indicators 2021 May-22
Minimum Maximum
Outstanding stock of FPD* (BRL Billion)
5,613.66 5,702.23 6,000.00 6,400.00
FPD Profile (%)
Fixed Rate 28.90 27.21 24.00 28.00
Inflation Linked 29.30 31.80 27.00 31.00
Floating Rate 36.83 36.80 38.00 42.00
FX 4.96 4.18 3.00 7.00
FPD Maturity Structure
Percentage Maturing in 12 Months
21.02 23.37 19.00 23.00
(%)
Average Maturity (years) 3.84 3.95 3.80 4.20
July – 2022
Average Life (years) 5.15 5.03 - -
*Includes domestic (BRL 5,475.96 billion - May/22) and external debt (BRL 226.27 billion - May/22) managed by the National Treasury
Diversified Public Debt Composition – Low FX risk exposure 31
100%

Exchange Rate
90%
80% 41%
Floating Rate May 22
70%
64.5%
60%
50%
Inflation Linked
40%
30%
59%
May 22
20%
35.5%
Fixed Rate
10%
0%
Nov-05
Nov-06
Nov-07
Nov-08
Nov-09
Nov-10
Nov-11
Nov-12
Nov-13
Nov-14
Nov-15
Nov-16
Nov-17
Nov-18
Nov-19
Nov-20
Nov-21
May-06
May-07
May-08
May-09
May-10
May-11
May-12
May-13
May-14
May-15
May-16
May-17
May-18
May-19
May-20
May-21
May-22
July – 2022
Fixed Rate Inflation Linked Floating Rate Exchange Rate
Source: National Treasury.
32
Public Debt Maturity Structure

6,6 6,6
6,3 6,4
6,0 5,9
5,6 5,5 5,5 5,7 5,7
5,3 5,4
5,2 5,0
4,8
4,4 4,6 4,5
4,2 4,3 4,1
4,0 4,0 3,8 4,0
3,5 3,5 3,5 3,6 3,6
3,3
30,2% 27,3% 24,8% 24,6% 22,3% 25,0% 25,5% 24,6% 22,2% 17,0% 16,9% 16,3% 18,7% 27,6% 21,0% 23,4%
July – 2022
Percentage Maturing in 12 Months Average Maturity (years) Average Life (years)

33
Outstanding Amount and Yields: Fixed rate bonds

300 15,0
13,20 13,45 13,65 13,77 13,76 12,93
13,15 14,0
258 12,64 12,59
13,66 13,0
250 13,32
11,13 12,71 12,74 12,85 12,89 12,0
11,0
200 10,0
9,0
183
BRL bn
8,0
% p.y.
150 142
128 7,0
125 110 114
107 6,0
101
100 80 5,0
78
66 4,0
66
47 44 3,0
50
2,0
11 6 1,0
- 0,0
Out-22
Jan-23
Jan-24
Jan-25
Jan-27
Jan-29
Jan-31
Jan-33
Jul-22
Jul-23
Jul-24
Jul-25
Abr-22
Abr-23
Abr-24
LTN On the run LTN Off the run NTN-F On the run NTN-F Off the run Taxa LTN Taxa NTN-F
Source: Anbima and National Treasury (June 24th, 2022)

Note: The yield of the NTN-F is based on the 252-d standard.
July – 2022
34
Outstanding Amount and Yields: NTN-B

11,38 12,0
215
200
10,0
186
171
150 8,0
146 5,62
6,73
5,975,74 5,86 5,96
5,60 5,62 5,63
123 5,71 5,80
6,0
BRL bn
% p.y.
100 116 108
92 93
79 4,0
50
2,0
26
13 8
- 0,0
Aug-22
Aug-24
Aug-26
Aug-28
Aug-30
Aug-32
Aug-40
Aug-60
May-25
May-23
May-27
May-35
May-45
NTN-B On the run NTN-B Off the run Yield
July – 2022
Source: Anbima and National Treasury (June 24th, 2022)
Domestic Federal Public Debt (DFPD) - Holders 35

Share of non-residents (May-22)
25%
18,9%
20%
15%
IOF: 9%
10% 0%
(Jun/1
3)
5%
0%
Jul-12
Jul-13
Jul-14
Jul-15
Jul-16
Jul-17
Jul-18
Jul-19
Jul-20
Jul-21
Jul-22
Jan-14
Jan-21
Jan-12
Jan-13
Jan-15
Jan-16
Jan-17
Jan-18
Jan-19
Jan-20
Jan-22
July – 2022
Note: FPD statistics are available at https://www.tesourotransparente.gov.br/publicacoes/monthly-
debt-report-mdr-ingles/2022/1
➢ Investor base is diversified, which contributes to the reduction of risks associated with the FPD.
36
Domestic Federal Public Debt (DFPD) - Holders

By security type (May/22) By maturity (May/22)
100% 1% 4% 100% 1% 4%
90% 90%
30% 25% 30% 25%
80% 42% 80% 42%
70% 62% 57% 70% 62% 57%
6% 20% 6% 20%
60% 60%
83% 83%
50% 50%
40% 40%
42% 42%
30% 64% 11% 30% 64% 11%
55% 55%
20% 42% 20% 42%
27% 27%
10% 10%
15% 13% 15% 13%
0% 0%
Financial Pension Mutual Funds Non-residents Government Insurance Financial Pension Mutual Funds Non-residents Government Insurance
Institutions Institutions
Inflation Linked Fixed Rate Floating Rate Others Inflation Linked Fixed Rate Floating Rate Others

Note: FPD statistics are available at https://www.tesourotransparente.gov.br/publicacoes/monthly-debt-report-mdr-ingles/2022/1
July – 2022
• Financial institutions portfolio: 42% in fixed rate bonds
• Pension Fund portfolio: 64% in Inflation-linked bonds, with the longest duration
• Mutual Fund’s portfolio: 62% in floating rate bonds
37

For additional information, please access the
National Treasury website:
www.tesouro.gov.br
Or contact the Institutional Relations Department

brazildebt@tesouro.gov.br
Disclaimer: The information on this presentation is issued by the Brazilian Debt Management Office (DMO) for
informational purposes. It does not contain and is not an invitation or offer to buy or sell securities .Translation
of the original text of this document is provided only for the convenience of the reader. While reasonable care
has been taken to ensure the authenticity of the translation. its accuracy cannot be guaranteed. Reliance upon
this translation shall be at the reader's own risk. Under no circumstances. shall the Brazilian National Treasury.
July – 2022
its officers. employees or agents be liable to the reader or anyone else for any inaccuracy. error. inconsistency.
omission. deletion. defect or alteration of the content of the translation from the original Portuguese text.
regardless of cause. or for any damages resulting therefore. The original Portuguese text of this document is
the only official version. which can be found in http://www.tesouro.fazenda.gov.br/en/homeen. In the event
of any discrepancy or contradiction between the Portuguese and translated version. the Portuguese version
shall prevail.

Brazil Investor Presentation

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Brazil Investor Presentation

Uploaded by

Copyright:

Available Formats

1

Brazilian Federal Public Debt

Brazilian Federal Public Debt

5 th largest country by area

11 thFDI host economy

Brazilian Federal Public Debt

3 Public Debt in Details

Strengths: strong external position, and a significant flow of FDI

Brazilian Federal Public Debt

150 -24 -22 -24 -28 -18 -31

➢ Meaningful international reserves and low public external debt.

➢ Current account deficits have been fully financed by flows of FDI.

Brazilian Federal Public Debt

Brazilian Federal Public Debt

(12-months – May/2022 prices, BRL billion)

General Social Welfare Policy (RGPS) – (% GDP)

Brazilian Federal Public Debt

-3,00% Private Sector Workers (Ex-Social Security Reform)

Brazilian Federal Public Debt

➢ The reform has contributed to the

Personnel Expenses – Number of active civil servants in the

Brazilian Federal Public Debt

Brazilian Federal Public Debt

2015 2016 2017 2018 2019 2020 2021 2022

Brazilian Federal Public Debt

Source: IMP - WEO Oct/21.

Brazilian Federal Public Debt

Source: National Treasury

Brazilian Federal Public Debt

Accumulated GDP growth between 2020 and 2021

Brazilian Federal Public Debt

Brazilian Federal Public Debt

Brazilian Federal Public Debt

the Public Sector Net Debt (PSND)

Brazilian Federal Public Debt

Brazilian Sovereign Rating Performance and CDS

Brazilian Federal Public Debt

BB+ negative 400

Main Macroeconomic Figures and Market Forecasts

Brazilian Federal Public Debt

GGGD (% GDP) 88,59 80,27 79,00 81,84 83,59 84,82 85,60

Source: Central Bank. Projections FOCUS (July 15th, 2022).

Brazilian Federal Public Debt

3 Public Debt in Details

Brazilian Federal Public Debt

✓ Social Security Reform

✓ New Regulatory Framework for Sanitation

✓ Constitutional Amendment Bill: Emergency (PEC 186)

✓ Income Tax Reform (approved by the Lower

Brazilian Federal Public Debt

✓ Provisional Measure “Auxílio Brasil”

✓ Regulation of tax, financial, and credit benefits:

Brazilian Federal Public Debt

✓ Regulation of the Meeting of Accounts (Constitutional Amendment 113/2021):

✓ Complementary Bill 295/16 (New Public Finance Law):

Fonte: Secretaria do Tesouro Nacional

Brazilian Federal Public Debt

➢ Brazil will play an active part in framing international rules;

➢ Integrating Brazilian economy into global networks;

Brazilian Federal Public Debt

Almost 35 million Brazilians have no clean water supply.

Brazilian Federal Public Debt

The implementation of the 17 SDG goals requires a solid