Monday, November 21, 2011

Brazil tries to limit Chinese land purchases..

SAO PAULO, (Reuters) - Brazil's government is working on a new rule to further limit the purchase of farm land by foreigners, arguing that the current legislation has been ``insufficient,'' a Brazilian newspaper said Saturday.

The new rule, which could come as a decree, aims to close loopholes that buyers have been using, such as purchasing land through Brazilian companies, Folha de S. Paulo newspaper said.

It could also impose restrictions on investment funds joined by foreigners and force international banks to sell land received as collateral of a defaulted loan within a year.

Brazil is one of the world's largest producers of food and biofuels, and the expansion of its production is seen as crucial toward addressing growing demand for these products, especially from emerging economies such as China.

Brazil's attorney general last year reinterpreted a land law that now limits purchases of rural land by foreigners, or by Brazilian firms that are controlled by foreigners, to areas no larger than 250-5,000 hectares () depending on the region.

The current rule has been fueling uncertainty among agricultural investors and proving a handicap for expansion, according to analysts.

The new legislation should set clearer mechanisms for foreigners to partner with Brazilian companies, especially for agricultural projects, Folha said.

The land legislation is aimed mainly at stopping the advance of China, which has been buying land in other countries through its sovereign fund, the newspaper said.

Official records show 4.3 million hectares of Brazilian land owned by foreigners, but it could be as much as three times bigger than that, the newspaper added.

Reporting by Inae Riveras; Editing by Paul Simao


  1. Don't expect something similar here. We'll be the last to act.

  2. Anyone still remembers the Fantasie Land? It was sold to Tan Yu, a billionaire who made his fortune in the Philippines. Liem Sioe Liong aka Sudono Salim, a billionaire who prospered under Suharto's corrupt regime. Corruption and gravy-trains are inseparable. Learn from history, it won't end well here.

  3. Spain's ghost airport

    its construction costs were in the ballpark of $225 million

    a bunch of idiotic spaniards - they could have bought 2x leaky roofs for their stadium.

  4. Soros and others are betting that China restarts the fake housing economy in 2012 if house prices fall too hard. If it works in the short-run, then it works for politicians of all stripes, elected or not.


    Adolf is laughing, "the last laugh is the best laugh."