BRASILIA -- The Brazilian government's elimination of the IOF financial operations tax on infrastructure and economic development financing will help boost the availability of credit for capital goods in the country, Finance Minister Guido Mantega said Tuesday.
Speaking to reporters outside the finance ministry, the minister said he hoped the measure would stimulate increased investment in local industries. "The reduction of the IOF will make bank credit more competitive for capital goods," Mr. Mantega said.
The government early Tuesday published a measure eliminating the tax on public and private sector loans for infrastructure and energy projects, exports, and technological development.
Brazil's government has taken special measures over recent months to try to stimulate investment following disappointing investment and economic growth figures in 2012. Brazil's economy grew only 0.9% in 2012 after a 2.7% expansion in the previous year.
Write to Gerald Jeffris at gerald.jeffris@dowjones.com
Speaking to reporters outside the finance ministry, the minister said he hoped the measure would stimulate increased investment in local industries. "The reduction of the IOF will make bank credit more competitive for capital goods," Mr. Mantega said.
The government early Tuesday published a measure eliminating the tax on public and private sector loans for infrastructure and energy projects, exports, and technological development.
Brazil's government has taken special measures over recent months to try to stimulate investment following disappointing investment and economic growth figures in 2012. Brazil's economy grew only 0.9% in 2012 after a 2.7% expansion in the previous year.
Write to Gerald Jeffris at gerald.jeffris@dowjones.com
