SAO PAULO, Aug 27 (Reuters) – Brazil’s President Luiz Inacio Lula da Silva said on Thursday that the trajectory of the country’s public debt is not a concern for him in a potential new term, arguing the government’s fiscal scenario has improved since he took office in 2023 and the country is on track to a primary surplus this year.
During an interview with TV Globo’s Jornal Nacional, the newscast with the largest audience in Brazil, Lula said economic growth will help to reduce the public debt as a share of Gross Domestic Product (GDP).
• Brazil’s gross debt increased over 10 percentage points since the beginning of Lula’s term, reaching 81.9% of GDP in June, according to central bank data.
• Lula, who will seek reelection in October, blamed part of the debt increase on Brazil’s benchmark interest rate, which is currently at 14%.
• Lula also addressed allegations against his son, Fabio Luis Lula da Silva, who is being investigated in Brazil over suspicions of reportedly improperly helping a lobbyist in dealings with the health ministry. The President said his son was innocent.
• Lula said there is only speculation so far, but recognized that the investigation raised suspicions about the government.
• He added that whoever commits mistakes will be held accountable, and clarified that – if proven guilty – Fabio Luis would be subject to the law like any other Brazilian citizen, stressing that he will not cover up for his son.
(Reporting by Andre Romani in Sao Paulo and Lisandra Paraguassu in Brasilia, Editing by Iñigo Alexander)
