BRAZIL’S government is putting global bond sales on hold due to a widening corruption scandal at state-run oil company Petrobras, a member of President Dilma Rousseff’s economic team said Tuesday.

    “There’s no window [for a foreign debt sale],” the source said on condition of anonymity because of the sensitivity of the government’s plans.

    Investor confidence in Brazil has been rattled by a growing fiscal deficit, stagnant economy and evidence of a price-fixing, bribery and political kickback scheme at the oil firm known as Petroleo Brasileiro SA.

    Brazil’s last foreign debt sale, in September, was a US$1 billion reopened offering of dollar-denominated global bonds due in January 2025.

    There are no plans yet for meetings between Brazil’s economic policymakers and foreign investors, according to the government source. So-called road shows are often scheduled in advance of global bond sales.

    (SD-Agencies)