Brazilian President
Signs Law To Create
Sovereign Wealth Fund
Brasilia - Brazilian
President Luiz Inacio
Lula da Silva Wednesday
signed a law to set up
the country's
long-awaited sovereign
wealth fund.
He also signed a
Provisional Measure bill
for pouring capital into
the fund. The bill will
take effect upon the
approval of the
congress.
The congress voted to
establish the fund last
week, but the opposition
has blocked the approval
of a bill designed to
provide capital for the
fund.
Also on Wednesday, the
head of of Lula's
Workers Party Ricardo
Berzoini criticized the
opposition for blocking
the operation of the
fund.
"There was a lack of
seriousness (of the
opposition). Now, the
government was obliged
to worked out a
Provisional Measure bill
to ensure the resources
(of the fund)," said
Berzoini.
Earlier this year,
Finance Minister Guido
Mantega said money for
the fund would come from
the federal government's
primary budget surplus,
about 3.8 percent of the
GDP.
On Tuesday, secretary of
the National Treasury
Arno Augustin affirmed
that the government
would not use the fund
to control foreign
exchange.
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