Brazil Likely To Stimulate Private Forestry Investment With New Mechanisms, Reports Invezz In A New Article

Online, February 26, 2013 (Newswire.com) - Investors' portal iNVEZZ today published a news article focused on the potential new mechanisms intended to stimulate private forestry investment in Brazil. With current instruments designed with the agricultural sector predominantly in mind, the new financial mechanisms are expected to meet the needs of the forestry sector in particular, and provide more favourable conditions for investment in forestry plantations in the Latin American country.

In its news article, iNVEZZ reports that Brazil's Strategic Affairs Secretariat (SAE), a Brazilian government body, is considering developing ideas on mechanisms to stimulate more private investment in the country's forestry sector. While currently there are financing mechanisms available to private investors, they address the shorter-term needs of the agricultural sector, where the time lapse between the initial investment and income generation is much shorter as compared with the forestry sector. In its commentary, iNVEZZ notes that although forestry investments have various advantages such as low volatility, they are highly illiquid and should be perceived as a long-term enterprise.

The iNVEZZ article then comments on the steps likely to be undertaken by Brazil's SAE and notes that the SAE is considering the development of a credit mechanism offering a grace period for repayment made available to borrowers. The investors' portal also reports that the SAE, whose responsibilities include the formulation of policies in areas deemed of strategic importance for the national development agenda, will aim to include the new financing model in a National Policy for Planted Forests.

In its article, iNVEZZ however notes that with the new mechanisms still in the making, it is unclear whether they will also be made available to foreign investors interested in forestry investment enterprises in Brazil.

The new forestry investment commentary of iNVEZZ can be found in the investors' portal's news section, which presents investors with timely information on current happenings in the investment world. In addition to news, iNVEZZ features in-depth analysis on topical investment issues, providing insights into a range of investment products and markets.

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