Speakers at the GTR Latin America Trade and Investment Conference in São Paulo last week admitted that Brazil’s current political scandal, surrounding widespread corruption, has had an undeniable impact on business and trade. Angela Martins, chief Brazil representative at National Bank of Abu Dhabi (NBAD), pointed out to the difficulty in pricing deals, as weakening demand is pushing prices down but the prospect of further sovereign downgrades should be pushing them up.
Andreas Dobner, head of credit and surety Latin America at Swiss Re, explained that there has been a higher claims activity as a result of the Brazilian recession, and that the insurer is now debating whether to continue seizing opportunities in the country or adopt a more conservative approach. However, he strongly believes that Brazil will remain a significant market for credit insurers and banks alike.
Indeed, Guillaume Légaré, chief Brazil representative for National Bank of Canada, sees this as a great time to invest in Brazil, with the low real, cheaper assets and increased exports presenting unprecedented opportunities.