She spoke on issues for tax planning for businesses operating in Brazil. Following are excerpts from Ms. Cunha's lecture. The Real Plan of 1994 controls inflation and is leading to wider spread reforms. President Cardoso, who spearheaded the plan, is the leading contender in Presidential elections scheduled to take place in October. The decrease in inflation leads to an increase in purchasing power for consumer goods and durable items.
Many foreign investors see a long-term potential of Brazilian growth.
Also, the new availability of long-term credit leads to growth. In 1997, around USD 15 billion dollars were injected into the Brazilian economy. This trend should continue to spur investment inflows. Currently very few sectors of the economy are off limits to the foreign investor. Restrictions to foreigners include the media, financial institutions, transportation and nuclear energy.