Limite ao endividamento externo brasileiro

Abstract

In Brazil, absorption of external debt is an old. However, in spite of the key role played by such resources for the country, implied costs are not negligible. Tough lessons learned by the country over the seventies and especially in the 80's led Brazil to review old mistakes and to avoid new ones. The vulnerability coming from external debt absorption is closely related to the difficulties of creation of future flows of funds sufficient to assure the payment of debt service and stocks. In this sense, the literature shows some methodologies for checking whether that absorption is sustainable in time. This paper aims at presenting a different test for solvency and sustainability of Brazilian external debt indebtedness.