© Ministry of Finance
Seeking to diversify its financial centre, Luxembourg has identified Brazil as a strategic partner, with bilateral trade expected to grow significantly following high-level discussions on sustainable investments and banking expansion.
The Luxembourg government continues to diversify its financial sector, with South America emerging as a key focus.
Minister of Finance Gilles Roth concluded a three-day mission to Brazil this week, meeting with his counterpart Fernando Haddad to discuss enhanced cooperation in sustainable finance.
Roth reported positive discussions, noting Brazil's particular interest in "blue" investments targeting water treatment and quality improvement.
The minister highlighted Luxembourg's existing ties with Brazil's banking sector, noting that six of Brazil's ten largest banks already operate from Luxembourg to manage their European activities. Roth expressed confidence that this presence would grow, with both new entrants and existing institutions expanding operations.
Current bilateral trade volume, specifically the fiscal aspect, stands at approximately €60 million, a figure Roth expects to rise significantly in coming years. He emphasised Brazil's appreciation for Luxembourg's financial expertise and regulatory framework, specifically citing the Financial Sector Supervisory Commission's (CSSF) responsible oversight.
The discussions also covered alignment on key financial policies. Both nations agreed to implement common sustainability and compliance standards for bond issuances, while also supporting minimum taxation requirements for multinational corporations.
