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									                                                   NOVEM B E R 2 0 0 7
                                                            GENEVA




Brazilian Federal Public Debt




                                José Franco Medeiros de Morais
                                Head of External Debt Operations
                                   Brazilian National Treasury
       Ministério da Fazenda




Brazilian Federal Public Debt




                                Public Debt Management


                                External Debt


                               Domestic Debt


                                Brazil’s Performance during the Crisis




                                                                         1
       Ministério da Fazenda




Annual Borrowing Plan 2007


2007 Guidelines

   Lengthen the average maturity, primarily by increasing the average term of the
     securities issued in auctions;

   Reduce the share of debt due in 12 months, thus reducing refinancing risk;
   Gradually replace Selic-linked and FX-linked bonds by fixed rate and price index
     ones, thus reducing the market risk;

   Issue   foreign currency bonds based on qualitative aspects, observing market
     conditions;

   Stimulate  the development of the yield curves for federal public securities on
     domestic and external markets; and

   Broaden the investor base.

                                                                                       2
             Ministério da Fazenda


  Annual Borrowing Plan 2007
 Federal Domestic Debt (DPMFi) Indicators
                                                                                                                                             2007
                                   Indicators                                      2003    2004      2005      2006      Sep-07
                                                                                                                                   Minimum     Maximum
Stock of DPMFi held by the public (R$ billion)                                     731.4   810.3     979.7     1,093.5   1,200.8    1,230.0         1,300.0
Average Maturity of DPMFi (months)                                                 31.3     28.1      27.4      31.1      36.1       32.0            36.0
% Maturing in 12 months                                                            35.3     46.1      41.6      35.7      33.2       29.0            33.0
                             Share of DPMFi (%)
                                   Fixed rate                                      12.5     20.1      27.9      36.1      36.8       37.0            43.0
                               Inflation Linked                                    13.6     14.9      15.5      22.5      25.7       23.0            27.0
                                 Floating rate                                     61.4     57.1      51.8      37.8      34.2       29.0            36.0
                                Exchange rate                                      10.8      5.2       2.7       1.3       1.0        1.0             2.0
                                      Others                                        1.8      2.7       2.1       2.2       2.3        2.0             4.0


 Federal Debt (DPF) Indicators*
                                                                                                                                             2007
                                   Indicators                                      2003    2004      2005      2006      Sep-07
                                                                                                                                   Minimum     Maximum
Stock of DPF* held by the public (R$ billion)                                      965.8   1,013.9   1,157.1   1,237.0   1,315.9    1,370.0         1,450.0
Average maturity - Federal Outstanding Debt (months)                               39.0     35.3      32.9      35.5      39.1       37.0            42.0
% Maturing in 12 months                                                            30.7     39.3      38.2      32.4      30.9       27.0            31.0
                              Share of DPF (%)
                                   Fixed rate                                       9.5     16.1      23.6      31.9      34.4       33.0            39.0
                               Inflation Linked                                    10.3     11.9      13.1      19.9      23.4       20.0            24.0
                                 Floating rate                                     46.5     45.7      43.9      33.4      31.2       26.0            32.0
                                Exchange rate                                      32.4     24.2      17.6      12.7       8.9       10.0            12.0
                                      Others                                        1.4      2.2       1.8       2.0       2.1        1.0             3.0
* It includes the external debt under the respo nsibility o f Natio nal Treasury

                                                                                                                                                              3
                  Ministério da Fazenda




The improvement on the Public Debt composition has reduced the exchange rate and floating rate risks



                                                                                                                                                                                       Considering the reduction on the sensitivity of the NPSD to the
Impact of 1% FX devaluation on Net PS Debt/GDP
                                                                                                                                                                                      variations on the currency and on the SELIC rate, in a stress
                                                                                                                                                                                      scenario that generates an overshooting of 56.6% on currency and a
 0.35%

 0.30%                                                                                                                                                                                following increase of 7.8 % on the SELIC rate (three standard
                  0.26%
 0.25%                                                                                                                                                                                deviations), NPSD/GDP in December of 2002 would increase 16.5%
 0.20%
                                                                                                                                                                                      in one year. On march of 2007, this same scenario would represent
 0.15%

 0.10%
                                                                                                                                                                                      a decrease of 1.3% in the NPSD/GDP being the increase of 1.56% on
 0.05%                                                                                                                                                                                interest rates compensated by the reduction of 2.83% caused by the
 0.00%                                                                                                                                                                                currency.
-0.05%

-0.10%                                                                                                                                                                                Impact of 1% SELIC change on Net PS Debt/GDP*
                                                                                                                                                                       -0.10%
-0.15%                                                                                                                                                                                0.30%
                    Apr-03

                             Jul-03




                                                        Apr-04

                                                                 Jul-04




                                                                                            Apr-05

                                                                                                     Jul-05




                                                                                                                                Apr-06

                                                                                                                                         Jul-06




                                                                                                                                                                    Apr-07

                                                                                                                                                                             Jul-07
         Jan-03




                                               Jan-04




                                                                                   Jan-05




                                                                                                                       Jan-06




                                                                                                                                                           Jan-07
                                      Oct-03




                                                                          Oct-04




                                                                                                              Oct-05




                                                                                                                                                  Oct-06


                                                                                                                                                                                                                0.28%
                                                                                                                                                                                      0.28%


Source: National Treasury                                                                                                                                                             0.26%

                                                                                                                                                                                                                                                                                                                                                                0.23%
                                                                                                                                                                                      0.24%
 The risk of NPSD/GDP not only was reduced in 17.8% of GDP in four
years, but the protection created by the fact that we have more FX                                                                                                                    0.22%


assets than liabilities has compensated the interest rate risk. This                                                                                                                  0.20%


shielded the NPSD against market risks.                                                                                                                                               0.18%


                                                                                                                                                                                      0.16%
                                                                                                                                                                                                       Apr-03

                                                                                                                                                                                                                Jul-03




                                                                                                                                                                                                                                           Apr-04

                                                                                                                                                                                                                                                    Jul-04




                                                                                                                                                                                                                                                                               Apr-05

                                                                                                                                                                                                                                                                                        Jul-05




                                                                                                                                                                                                                                                                                                                   Apr-06

                                                                                                                                                                                                                                                                                                                            Jul-06




                                                                                                                                                                                                                                                                                                                                                       Apr-07

                                                                                                                                                                                                                                                                                                                                                                  Jul-07
                                                                                                                                                                                              Jan-03




                                                                                                                                                                                                                                  Jan-04




                                                                                                                                                                                                                                                                      Jan-05




                                                                                                                                                                                                                                                                                                          Jan-06




                                                                                                                                                                                                                                                                                                                                              Jan-07
                                                                                                                                                                                                                         Oct-03




                                                                                                                                                                                                                                                             Oct-04




                                                                                                                                                                                                                                                                                                 Oct-05




                                                                                                                                                                                                                                                                                                                                     Oct-06
                                                                                                                                                                                      Source: National Treasury
                                                                                                                                                                                      •In 12 months                                                                                                                                                                        4
       Ministério da Fazenda




Brazilian Federal Public Debt




                                Public Debt Management


                                External Debt


                               Domestic Debt


                                Brazil’s Performance during the Crisis




                                                                         5
       Ministério da Fazenda




An improved profile of public external debt

Impact of the “Cleaning Up” on the Federal Government External Debt from 2005 to 2007
                                                                                                                                   (US$ bn)
                                                      Operations                                             Face Value1


                     External Public Debt in Bonds                                                                                  19.2
                          C-Bond call (Oct-05)                                                                                        1.1
                          Early Redemption Program2                                                                                  10.3
                          Brady Bonds call (Apr-06)                                                                                   6.5
                          Tender Offer (Jun-06)                                                                                       1.3

                     Contractual Debt                                                                                               22.1
                          IMF early payment I (Jul-05)                                                                                4.9
                          IMF early payment II (Dec-05)                                                                              15.5
                          Paris Club early payment (Jan-063)                                                                          1.7

                     Total                                                                                                          41.3
                     1
                         It captures the impact of the operations on the outstanding public debt
                     2
                         The program started in Jan/06. The value of US$ 10.3 bn refers to the bonds repurchased up to 08/31/07.
                     being US$ 6.0 Bn repurchased in 2006 and US$ 4.3 Bn in 2007.
                     3
                         Announcement



                                                                                                                                              6
             Ministério da Fazenda




External Public Debt - Indicators


External Public Security Debt Profile
                                             Repurchased Amount Since January 2007

            1.200


            1.000


               800
   US$ mm




               600


               400


               200


                -
                                                           BR 10N
                          BR 08


                                           BR 09
                                                   BR 10


                                                                    BR 11

                                                                            BR 12
                                                                                    BR 13
                                                                                            BR 14
                                                                                                    BR 15

                                                                                                            A-bond
                                                                                                                     BR 19
                                                                                                                             BR 20
                                                                                                                                     BR 24


                                                                                                                                                      BR 25
                                                                                                                                                              BR 27
                                                                                                                                                                      BR 30
                                                                                                                                                                              BR 34
                                                                                                                                                                                      BR 40
                                  BR 09F




                                                                                                                                             BR 24B
            Source: National Treasury.      2007 – From September to December

                                                                                                                                                                                              7
           Ministério da Fazenda




  External Public Debt - Indicators

 Redemption Program and new issuances since 2006 – Impact on External Debt’s Payment Flow (US$ bn)*
     3.0

     2.5                                                                                                                                2.4
                                                              2.2
                                                                                                          2.0
     2.0
                                                                                 1.5
     1.5

     1.0

     0.5                                              0.4

     -

    (0.5)

    (1.0)

    (1.5)

    (2.0)
             2007              2010       2013           2016       2019        2022       2025          2028        2031     2034     2037      2040

 * Since Jan/06 until Aug/07      Source: National Treasury

                                  2005                   2006                2007
Federal External Debt*                                                                         Federal External Debt        Dec-05   Dec-06   Aug-07
                           Nominal Financial       Nominal Financial   Nominal Financial
  Issuances                 12.49      12.49        5.45      5.44      2.88      3.00     Outstanding in real (%)           1.95     4.68     8.42
  Early redemptions           -          -          6.00      7.06      4.30      5.70
                                                                                           Maturity (months)                 66.42    72.14    75.14

   * Refers to External Security Debt                                                      Outstanding (US$ Bn)              75.9     67.1     62.8




                                                                                                                                                       8
                          Ministério da Fazenda




                External Public Debt - Indicators


                External Public Security Debt Profile
                                                                                     Outstanding Amount
                  6.000


                  5.000


                  4.000


                  3.000


                  2.000


                  1.000


                      -
                                                                    BR 10N




                                                                                                                                                              BR 24B
                                   BR 08


                                                    BR 09
                                                            BR 10


                                                                             BR 11
                                                                                     BR 12
                                                                                             BR 13
                                                                                                     BR 14
                                                                                                             BR 15
                                                                                                                     BR 17


                                                                                                                                      BR 19
                                                                                                                                              BR 20
                                                                                                                                                      BR 24


                                                                                                                                                                       BR 25
                                                                                                                                                                               BR 27
                                                                                                                                                                                       BR 30
                                                                                                                                                                                               BR 34
                                                                                                                                                                                                       BR 37
                                                                                                                                                                                                               BR 40
                                                                                                                             A-bond
                                           BR 09F
RECENT EVENTS




                                                            August - 2007 Outstanding                                                         December - 2006 Outstanding


                      Source: National Treasury.

                                                                                                                                                                                                                       9
                        Ministério da Fazenda




                External Public Debt - Indicators


                External Public Security Debt Profile
                                     Repurchased Amount as a percentage of the Outstanding Amount
                  25%


                  20%


                  15%


                  10%


                   5%


                   0%
                                                                BR 10N
                             BR 08



                                              BR 09

                                                        BR 10



                                                                         BR 11

                                                                                 BR 12

                                                                                         BR 13

                                                                                                 BR 14

                                                                                                         BR 15

                                                                                                                 A-bond

                                                                                                                          BR 19

                                                                                                                                  BR 20

                                                                                                                                          BR 24



                                                                                                                                                           BR 25

                                                                                                                                                                   BR 27

                                                                                                                                                                           BR 30

                                                                                                                                                                                   BR 34

                                                                                                                                                                                           BR 40
                                     BR 09F




                                                                                                                                                  BR 24B
RECENT EVENTS




                                                      Jan - Feb                     Mar - Apr                    May - Jun                        Jul - Aug

                      Source: National Treasury.

                                                                                                                                                                                                   10
       Ministério da Fazenda




Brazilian Federal Public Debt




                                Public Debt Management


                                External Debt


                               Domestic Debt


                                Brazil’s Performance during the Crisis




                                                                         11
                         Ministério da Fazenda


                National Treasury Performance - Big opportunities merge in the domestic market
                Domestic medium term fixed rated bonds (NTN-F) - Outstanding and yields (as of Oct-07)

                                                    12.72       12.89    12.80          12.86     12.85                       12.83
                  60                      12.60



                                                                11.46    11.46          11.47     11.52                       11.56
                  50     11.22            11.39     11.42

                                                                10.82                             10.80                                 10.91    10.89
                       10.96              10.79     10.79                10.78          10.79                                 10.75

                         10.93                                                                                                          10.29    10.26
                  40                                                                                       10.59
                                                                                                              10.05


                  30
                                                                                                                                        9.11     9.19
                                                                                                                9.00


                  20




                  10
RECENT EVENTS




                   0
                           Jan-08         Jan-10     Jul-10     Jan-11   Jan-12         Jan-13    Jan-14        Jan-16         Jan-17   Jan-22   Jan-28

                                                   Outstanding R$ bn       Yield 7/10            Yield 8/16              Yield 10/18
                                                                                                                                                          12
                Source: ANDIMA and Bloomberg
                          Ministério da Fazenda


                National Treasury Performance - Big opportunities merge in the domestic market
                Inflation linked bonds (NTN-B) - Outstanding and yields (as of Oct-07)

                  60

                                                7.92               7.99         8.03           8.05           8.00         7.93
                              7.75
                                                                                                                                    7.55
                                                                                                                                                    7.31       7.26
                  50          7.02              7.01               7.02         6.99           6.94           6.83         6.78
                                                                                                                                    6.47            6.36       6.24
                              6.65              6.58               6.60         6.61           6.68
                                                                                                              6.51         6.43
                  40
                                                                                                                                    6.12            6.06       6.01


                  30




                  20




                  10
RECENT EVENTS




                   0
                          May 2009           Nov 2009             Aug 2010   May 2011         Aug 2012    May 2015      May 2017   Aug 2024       May 2035   May 2045

                                                                     Outstanding R$ bn           Yield 7/10          Yield 8/16     Yield 10/18
                Source: ANDIMA
                Note 1: The may/09, aug/10, may/11 and may/15 NTN-B are not issued anymore.
                                                                                                                                                                        13
                Note 2: There are NTN-Bs with other maturities.
       Ministério da Fazenda




Performance in Domestic Market – Liquidity Indicators


Average daily trade value – August (R$ million)
                                                                                       1,865.87




                                                                 1,491.83
                NT N-F                  NT N-B


                                                                            1,148.76




                                                        333.45


                               85.67
                   7.18

                           2005                             2006                 2007

          Source: Andima



                                                                                                  14
                      Ministério da Fazenda


    Public Bonds
Average life of secundary market


                                   18                                             60



                                   15
                                                                                  55




                                                                                       Months (Price index)
Months (Fixed rate)




                                   12

                                                                                  50

                                     9


                                                                                  45
                                     6



                                     3                                            40
                                              ago/04   ago/05   ago/06   ago/07

                         Fixed rate            5,1      8,7      13,1     16,0
                         Price index           42,0     52,8     51,0     58,0
                                                                                                              15
      Ministério da Fazenda


 Public Bonds
NTN-F 2010

      18


      17


      16


      15
  %




      14


      13


      12


      11


      10
       Jan-06            Apr-06        Jul-06      Oct-06   Jan-07   Apr-07       Jul-07   Oct-07

                                  ANDIMA (yield)                          MARKET (yield)
                                                                                                    16
                                                         %




                                                                                 10,0
                                                                                        10,5




                           5,5
                                 6,0
                                       6,5
                                             7,0
                                                   7,5
                                                         8,0
                                                               8,5
                                                                     9,0
                                                                           9,5
                                                                                               NTN-B 2045
                  Jan-06
                  Feb-06
                                                                                                            Public Bonds
                                                                                                                           Ministério da Fazenda




                  Mar-06
                  Apr-06
                  May-06
                  Jun-06
                   Jul-06




 ANDIMA (yield)
                  Aug-06
                  Sep-06
                  Oct-06

                  Nov-06
                  Dec-06
                  Jan-07
                  Feb-07
                  Mar-07

                  Apr-07
                  May-07
                  Jun-07
 MARKET (yield)




                   Jul-07
                  Aug-07
                  Sep-07
                  Oct-07
17
      Ministério da Fazenda


 Public Bonds
NTN-B 2015


    11,0
    10,5
    10,0
     9,5
     9,0
     8,5
%




     8,0
     7,5
     7,0
     6,5
     6,0
     5,5
                                                                     Jul-06
                                                   May-06




                                                                                                         Nov-06
           Jan-06




                              Mar-06




                                                            Jun-06




                                                                                                                           Jan-07
                                                                                                Oct-06




                                                                                                                  Dec-06
                                          Apr-06




                                                                              Aug-06

                                                                                       Sep-06
                     Feb-06




                                                                                                                                    Feb-07
                                       ANDIMA (yield)                                             MARKET (yield)
                                                                                                                                             18
                 Ministério da Fazenda


         The new frontier: increasing foreign access to the fixed income market
                                                                                                                                                                                                        Foreigner´s Investors: Distribution among Fixed Income
 Foreigner´s Investors: Portfolio level (US$ bn)
                                                                                                                                                                                                        instruments (R$ bn)
                                                                                                                                                                                                                70
         140.0
                                                                                                                                                                                                                                                          Others
                                                                                                                                                                                                                60
         120.0
                                                      Fixed Income                                     Equities
                                                                                                                                                                                                                                                          Mutual Funds (FIF)
                                                                                                                                                                                        122.6                                                                                                                                                                                                     23.3

         100.0                                                                                                                                                                                                  50                                        National Treasury Bonds

                                                                                                                                                                                                                40




                                                                                                                                                                                                        R$ Bn
          80.0
US$ Bn




          60.0                                                                                                                                                                                                  30

                                                                                                                                                                                                                                                                                                                                                                                                  42.7
          40.0                                                                                                                                                                                                  20
                                                                                                                                                                                                                                       10.5
          20.0                                                                                                                                                                               34.2
                                                                                                                                                                                                                10
                                                                                                                                                                                                                     4.6               9.7
           0.0                                                                                                                                                                                                       2.9
                                                                                                                                                                                                                0
                                                      May-06




                                                                                                                                                                  May-07
                                    Mar-06




                                                                                                                                                Mar-07
                                                                        Jul-06




                                                                                                                                                                                    Jul-07
                                                                                                   Oct-06
                  Jan-06
                           Feb-06


                                             Apr-06


                                                               Jun-06


                                                                                 Aug-06
                                                                                          Sep-06


                                                                                                            Nov-06
                                                                                                                     Dec-06
                                                                                                                              Jan-07
                                                                                                                                       Feb-07


                                                                                                                                                         Apr-07


                                                                                                                                                                           Jun-07


                                                                                                                                                                                               Aug-07




                                                                                                                                                                                                                                                           May-06




                                                                                                                                                                                                                                                                                                                                                                       May-07
                                                                                                                                                                                                                                        Mar-06




                                                                                                                                                                                                                                                                                                                                                     Mar-07
                                                                                                                                                                                                                     Jan-06




                                                                                                                                                                                                                                                                    Jun-06
                                                                                                                                                                                                                                                                             Jul-06



                                                                                                                                                                                                                                                                                                        Oct-06
                                                                                                                                                                                                                                                                                                                 Nov-06
                                                                                                                                                                                                                                                                                                                          Dec-06
                                                                                                                                                                                                                                                                                                                                   Jan-07




                                                                                                                                                                                                                                                                                                                                                                                Jun-07
                                                                                                                                                                                                                                                                                                                                                                                         Jul-07
                                                                                                                                                                                                                              Feb-06


                                                                                                                                                                                                                                                 Apr-06




                                                                                                                                                                                                                                                                                      Aug-06
                                                                                                                                                                                                                                                                                               Sep-06




                                                                                                                                                                                                                                                                                                                                            Feb-07


                                                                                                                                                                                                                                                                                                                                                              Apr-07




                                                                                                                                                                                                                                                                                                                                                                                                  Aug-07
Source: CVM                                                                                                                                                                                             Source: CVM

Foreigner's Investors: Domestic Debt Participation*
 5.00%

 4.50%
                                                                                                                                                                                    4.52%
                                                                                                                                                                                                        The good fundamentals of the Brazilian
 4.00%
                                                                                                                                                                                                        economy are attracting foreign investors
                                                                                                                                                                                                        to the domestic debt, but there is still
 3.50%

 3.00%

 2.50%

 2.00%
                                                                                                                                                                                                        space for further growth.
 1.50%

 1.00%

 0.50%

 0.00%
                 6




                 6




                 7




                 7
                 6




                 7
                 6




                 6




                 6

                 6




                 7




                 7
                 6




                 6

                 7
                6




                6




                7




                7
                6
            r-0




            g- 0




            r-0




            g- 0
            y-0




            y-0
            t-0
            v-0
            n-0




            c-0
            n-0




            n-0




            n-0
            b-0




             l-0




            b-0




             l-0
           p-0
            r-0




            r-0
          Ju




          Ju
         Oc
         Ap




         Ap
         Ma




         Ma
         Ma




         Ma
         No

         De
         Au




         Au
         Fe




         Fe
         Ju




         Ju
         Ja




         Se




         Ja




Source: SELIC                                                                                                                                                                                                                                                                                                                                                                                              19
         Ministério da Fazenda


 The new frontier: increasing foreign access to the fixed income market
Domestic Public Debt Profile

                                                                                    Considering the guidelines stated in the
               8.0%
                                                        0.6%
                                                                                    Annual Borrowing Plan for 2007, in particular
                                                                                    the development of the secondary market, the
                                  5.0%
                                                                                    lengthening of the fixed rate and inflation
                                                                                    linked bonds and the broaden of the investor
                                                                                    base ...


 Fixed rate        Inflation linked      Selic Linked          FX-linked   Others
                Domestic Investors             Non Resident Investors*




 * Estimated          Source: National Treasury jun - 07                            Maturity Distribution of Inflation Linked Bonds

... we believe the foreign investors have an
                                                                                    40.0%




important role to help us in reaching these
                                                                                    35.0%
                                                                                                                                                                      3.6%

                                                                                    30.0%

targets as they usually have a higher                                               25.0%

participation on fixed rate and inflation linked                                    20.0%
                                                                                                                      0.4%
                                                                                                                                                       1.0%

long term bonds.                                                                    15.0%


                                                                                    10.0%


                                                                                     5.0%


                                                                                     0.0%

                                                                                             < 1 year     1 < years < 2   2 < years < 3    3 < years < 4   4 < years < 5     > 5 years

                                                                                                               Domestic Investors         Non Resident Investors*

                                                                                    * Estimated   Source: National Treasury Jun - 07                                                     20
Ministério da Fazenda




                   Inflation Linked Bonds With Maturity Greater Than 5 Years
                                       Domestic Investors
                                                             Investment Fund
                                                                   16%




                                                                                    Domestic Financial
           Pension Fund                                                                Institution
               54%                                                                        20%




                                                                Non-Financial
                                                               Institution 10%


                                                 Estimated   Source: National Treasury Jun - 07          21
       Ministério da Fazenda




Brazilian Federal Public Debt




                                Public Debt Management


                                External Debt


                               Domestic Debt


                                Brazil’s Performance during the Crisis




                                                                         22
          Ministério da Fazenda




 How did Brazil perform during the crisis?
 Net FX outflow in the financial sector and FX Reserves
 Compared with past recent turmoil, subprime credit crisis has had little impact on FX flow, which
demonstrates a better risk perception on Brazilian economic fundamentals.
                                                                                                        180,000
                                       FX Outflow                                    162,962
                                                                                                        150,000
                                       FX Reserves
                                                                                                        120,000




                                                                                                                  USD Mn
                                                                                                        90,000


                       45,811                                                                           60,000


                                                                                                        30,000
                                                           30,067                              2,022
                       18,349      12,394       7,524                  14,748     8,381
                                                                                                        0
                       Aug/98 -     Jan/99 -    Sep/01 -    Apr/02 -   Apr/04 -   May/06 -   Aug/07 -
                       Sep/98        Mar/99     Dec/01      Dec/02      Jul/04     Jul/06    Sep/07


                  Russian            BRL                     BRL        Fed         Fed      Subprime
                   Crisis         Exchange       9/11      Electoral   Funds I    Funds II
                                  Rate Crisis               Crisis
Source: Central Bank



                                                                                                                           23
        Ministério da Fazenda




 How did Brazil perform during the crisis?
 VIX Index vs. NTN-B 8/15/2010

             12.5                   Fed Funds II                        Subprime                    35

             11.5                                                                                   30

             10.5                                                                                   25

              9.5                                                                                   20
          %




              8.5                                                                                   15

              7.5                                                                                   10

              6.5                                                                                   5

              5.5                                                                                   0
                Jan-06          Apr-06     Jul-06     Oct-06   Jan-07   Apr-07        Jul-07   Oct-07

                                    NTN-B 8/15/2010                     VIX Index (rhs)
Source: Bloomberg


                                                                                                         24
                 Ministério da Fazenda




 How did Brazil perform during the crisis?
  Embi
                                           Dif.                                                   EMBI+                                                        EMBI+ BR
 250                                                                                                                                                                                                   50

                                                                                                                                                                                                       45

 200                                                                                                                                                                                                   40

                                                                                                                                                                                                       35

 150                                                                                                                                                                                                   30

                                                                                                                                                                                                       25

 100                                                                                                                                                                                                   20



                                                                                                                                                                                                            Credit Default Swap - CDS
                                                                                                                                                                                                       15

  50                                                                                                                                                                                                   10

                                                                                                                                                                                                       5
                                                                                                                                                                                                                                                Dif.                             CDX 5y on the run                              CDS Brasil 5y
   0                                                                                                                                                                                                   0
                                                                                                                                                                                                                                                                                                                                                                                    150
       1-Jun
               7-Jun
                       13-Jun
                                19-Jun
                                         25-Jun
                                                  29-Jun
                                                           5-Jul




                                                                                                       2-Aug
                                                                                                               8-Aug
                                                                                                                       14-Aug
                                                                                                                                20-Aug
                                                                                                                                         24-Aug
                                                                                                                                                  30-Aug
                                                                   11-Jul
                                                                            17-Jul
                                                                                     23-Jul
                                                                                              27-Jul




                                                                                                                                                           5-Sep
                                                                                                                                                                   11-Sep
                                                                                                                                                                            17-Sep
                                                                                                                                                                                     21-Sep
                                                                                                                                                                                              27-Sep
                                                                                                                                                                                                            200
                                                                                                                                                                                                                                                                                                                                                                                    130
Source: Bloomberg
                                                                                                                                                                                                            150                                                                                                                                                                     110


                                                                                                                                                                                                                                                                                                                                                                                    90
                                                                                                                                                                                                            100

                                                                                                                                                                                                                                                                                                                                                                                    70

                                                                                                                                                                                                             50
                                                                                                                                                                                                                                                                                                                                                                                    50


                                                                                                                                                                                                              0                                                                                                                                                                     30
                                                                                                                                                                                                                  1-Jun

                                                                                                                                                                                                                          8-Jun

                                                                                                                                                                                                                                  15-Jun

                                                                                                                                                                                                                                           22-Jun

                                                                                                                                                                                                                                                       29-Jun




                                                                                                                                                                                                                                                                                                     3-Aug

                                                                                                                                                                                                                                                                                                             10-Aug

                                                                                                                                                                                                                                                                                                                      17-Aug

                                                                                                                                                                                                                                                                                                                               24-Aug

                                                                                                                                                                                                                                                                                                                                        31-Aug

                                                                                                                                                                                                                                                                                                                                                 7-Sep

                                                                                                                                                                                                                                                                                                                                                         14-Sep

                                                                                                                                                                                                                                                                                                                                                                  21-Sep

                                                                                                                                                                                                                                                                                                                                                                           28-Sep
                                                                                                                                                                                                                                                                6-Jul

                                                                                                                                                                                                                                                                        13-Jul

                                                                                                                                                                                                                                                                                   20-Jul

                                                                                                                                                                                                                                                                                            27-Jul
                                                                                                                                                                                                            Source: Bloomberg

                                                                                                                                                                                                                                                                                                                                                                                     25
            Ministério da Fazenda


 Public Bonds
NTN-B (CPI index bonds)


                              Traditional and Buyback Auctions of NTN-B (August/2007)

           2.500.000



           2.000.000



           1.500.000
  Amount




                                                                                        Demand
                                                                                        Offer
           1.000.000                                                                    Sold
                                                                                        Purchased

            500.000



                     0              Regular                            Buyback
                                              21-Aug-07          22-Aug-07




                                                                                                    26
              Ministério da Fazenda




 Capital Market booming

Credit (% GDP)                                                                                                                                        Stock Market Value (% GDP) – Bovespa
34
                                                                                                                                         33.1                                                                                           89.2%

32

                                                                                                                                                                                                                           66.5%
30                                                                                              29.3
                                                                                                                                                                                                                  52.5%
28
                                                                                                                                                                                                        46.6%
                                                                                                                                                        37.4%                               39.8%
26                                                                                                                                                                   33.0%
                                                             25.8                                                                                                               29.7%

24                            23.4


22
     Aug-03




                                     Aug-04




                                                                    Aug-05




                                                                                                            Aug-06




                                                                                                                                             Aug-07
                          Apr-04




                                                         Apr-05




                                                                                              Apr-06




                                                                                                                                Apr-07
              Dec-03




                                               Dec-04




                                                                                  Dec-05




                                                                                                                      Dec-06
                                                                                                                                                         2000         2001       2002       2003           2004   2005     2006         2007*

Source: Central Bank                                                                                                                                   Source: Bovespa and IBGE

Debentures: Volume and # of registers                                                                                                                 Stocks - Public Offerings (R$ Mn)
                         97                                                                                                                                                                                                        97
                                                                                                                     69.5

                                                                                                                                                                     Secondary
                                                                                                                                                                                                                    69
                                                                                                       59                                                            Primary                                                       18,388
                                              52
                                                                             47
         47                                                                                     41.5                           47                                    # Offerings
                                                                                                                                         29.4                                                                     14,594
                                                         25                                                                                                                                        31

                                                                                                                                          28                                     21                                                29,516
                       15.2           14.6
                                                                                                                                                                8                                   9,777         16,588
     8.7                                                                     9.6                                                                                                4,683
                                                        5.3                                                                                                  1,856              4,470               4,365
  2000                 2001           2002              2003                 2004              2005                  2006                2007 *              2003               2004                2005           2006            2007*
                                       Volume R$ bn                                        # Registers



                                                                       Source: CVM * As of October 11                                                 Source: CVM      * As of October 11
                                                                                                                                                                                                                                                27
       Ministério da Fazenda




               For additional information access

               Brazilian National Treasury site:




               www.tesouro.fazenda.gov.br




               Or contact Institutional Relations area:




               brazildebt@fazenda.gov.br




Translation of the original text of this document is provided only for the convenience of the reader. While reasonable care has been taken to
ensure the authenticity of the translation, its accuracy cannot be guaranteed. Reliance upon this translation shall be at the reader's own risk.
Under no circumstances, shall the Brazilian National Treasury, its officers, employees or agents be liable to the reader or anyone else for any
inaccuracy, error, inconsistency, omission, deletion, defect or alteration of the content of the translation from the original Portuguese text,
regardless of cause, or for any damages resulting therefrom. The original Portuguese text of this document is the only official version, which
can be found in http://www.stn.fazenda.gov.br/index.asp. In the event of any discrepancy or contradiction between the Portuguese and
translated version, the Portuguese version shall prevail.

								
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