Tag Along, ma non troppo

The capital market is built on a basic ingredient: confidence. As the popular saying goes, “a deal is a deal.” Therefore, disseminating that a specific country “complies with contracts” is not enough if the ways that the legislation is interpreted can be bent according to prevailing interests. Devious interpretations of the regulations frustrate investors’ expectations. At best, they judicialize the economic activity, translating that into a component of the “Brazil cost.” At worst, they undermine the country’s credibility, leading investors to seek more welcoming jurisdictions.


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