TITLE:
The Impact of Nationalization of Public Debt through On-Lending Agreements According to Brazilian Financial Law
AUTHORS:
Luis Felipe Vidal Arellano
KEYWORDS:
Public Debt, External Credit, On-Lending Agreements, Loan Agreements, Brazilian Fiscal Rules
JOURNAL NAME:
Beijing Law Review,
Vol.15 No.2,
June
13,
2024
ABSTRACT: The present article examines the nationalization of external public credit agreements in Brazilian financial law, focusing on the nuanced legal interpretation of on-lending operations within Brazil’s fiscal rules. It explores the role of external credit in developing economies, with a specific lens on Brazil’s legal mechanisms for authorizing such financial activities. The paper delves into the differentiation between internal credit and external credit operations and the implication of such a distinction for public debt control, emphasizing the legal and economic considerations unique to Brazil’s context. The article also discusses the role of the Federal Senate in authorizing external financial operations and regulating public indebtedness. Through an analysis of on-lending agreements, the paper illustrates how these financial instruments can facilitate foreign capital access for national development, bypassing the more cumbersome approval processes of external credit agreements. Therefore, this work aims to contribute to understanding Brazil’s financial law and its impact on the country’s economic policy and debt management strategies.