Igor Cornelsen on imgfave is a retired banker, private investor, and financial advisor, originally from Brazil. During his career, he held top positions at Brazil’s major financial institutions, eventually retiring to Florida and the Bahamas. Due to his extensive experience, Igor Cornelsen often comments on Brazilian markets and the economy as a whole.
Igor Cornelsen recently observed that despite the economic slowdown that Brazil is currently facing, in part due to the Rousseff administration’s policies, Brazil’s banks are posting profits. According to Cornelsen, this is the result of solid lending practices, with loans going to creditworthy borrowers only. Although the banking sector is not immune to the problems that plague the wider economy, so far it continues to do well.
Igor Cornelsen, however, is not quite as bullish on the future of the Brazilian economy as a whole. In his view, the country’s monetary policy is in need of a complete overhaul. He sees the administration’s focus on keeping interest rates sky-high and an overvalued Real as two of the major problems, as well as expensive projects will little social or economic benefits. As a result, economic growth has been dismal.
The plethora of corruption scandals that has rocked the country and the lack of public and investor confidence in the government have also added to the problem, according to Igor Cornelsen. The Petrobras scandal, involving the bankruptcy of the country’s state-run oil company, has brought the legitimacy of the administration into question and has even led to calls for impeachment proceedings to begin.
Cornelsen believes the appointment of Chicago Ph.D. Joaquin Levy as Finance Minister provides a glimmer of hope. In his view, the only hope for the country is to return to the pre-2008 policies that led to the country’s economic transformation. In the present state of affairs, the financial climate is simply not welcoming to investors, severely limiting growth.