05/05/2014 – 09h06
Despite the great skepticism in Brazil regarding the economy, foreign investors are betting that Brazil will “get it right.” That is the opinion of José Olympio Pereira, CEO of Credit Suisse bank – he believes the country is living a paradox.
“It’s the biggest wave of pessimism among Brazilian businessmen that I’ve seen in the past ten years. I see no one who supports the current economic policy,” he says.
“Paradoxically, in spite of the great internal pessimism in the short run, I have never seen such a great interest from foreign investors, particularly, in private equity.” Direct foreign investment is still high. Last year, US$ 64 billion were invested and US$ 65 billion in 2012.
“We believed the flow would decline this year. But, in the first quarter, the total in the previous 12 months amounted to US$ 64 billion and it keeps growing.” The bank predicts that some US$ 55 billion will be invested in 2014.
“These private equities are coming with a great appetite.” Investors who buy shares in companies are different from those who invest in the stock market and have withdrawn.
“Stock market investors can go in and out at anytime, and obviously are waiting. The others want to buy when there’s no competition. They believe in the country in the medium- and long terms.”
The CEO of the Swiss bank in Brazil has told businessmen that there is much capital willing to invest.
“They can count on the market if they need it,” he says. The question is how long investors will continue more interested in Brazil than in other countries.
“We can’t frustrate these investors or count on this interest forever,” he stresses. “We will let the market’s invisible hand work and allow Brazil to take off.”