In March 2001, P-36, a platform owned by Petrobras, Brazils state-owned oil company, sunk off the coast. Critics claimed that slipshod management and a drive for profit were to blame. The companys cost of financing and risk coverage shot up in what would turn out to be a low point. The year after, Federal elections saw President Luiz Inácio Lula da Silva, of the left-wing Workers Party, elected and Brazils financial markets hit their nadir with the real tumbling and sovereign spreads ballooning.
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