Rubem Novaes believes the effect will last three to four months. "There's excessive panic about the coronavirus," says BB president
Banco do Brasil (BB) President Rubem Novaes stated that the novel coronavirus (COVID-19) epidemic will have consequences for the Brazilian economy, but that the effect will be temporary. He highlighted that economists at the Central Bank and the government's economic team have estimated that the outbreak's impact on Gross Domestic Product (GDP) growth will be 0.5%.
According to the BB president, the epidemic, which has been affecting several countries, is serious and will paralyze some activities, causing problems for certain sectors. "But this is a temporary phenomenon; it will last three months, four months. After that, life will go on as normal," said Novaes, speaking at the Rio de Janeiro Commercial Association. He believes there is "a certain excess of panic" regarding the coronavirus.
Rubem Novaes also commented on the GDP result, which closed last year with growth of 1.1% compared to 2018. The result was achieved after the variation in the fourth quarter of 2019, which had an increase of 0.5% compared to the previous period. In comparison with the same quarter of 2018, there was an increase of 1.7%. The numbers were released by the Brazilian Institute of Geography and Statistics (IBGE) on Wednesday (4).
"Statistics show that what drove GDP down was the government sector. It's government spending that, by falling, drives GDP down. This shows that the government is adjusting. A contraction in public spending is necessary. The private sector, the healthiest and most efficient part of the economy, is growing at over 21%," said the BB president.
Renegotiating debts
Banco do Brasil and the Rio de Janeiro Commercial Association signed a technical cooperation agreement this Friday (6) to launch the “Vem que Dá” campaign, aimed at negotiating debts of micro, medium and small companies based in the state of Rio. The action has the support of the Federation of Commerce of Goods, Services and Tourism of Rio de Janeiro (Fecomércio RJ) and the Brazilian Support Service for Micro and Small Businesses (Sebrae Rio).
The bank will offer pre-approved proposals during the campaign, which begins Monday, March 9th, and runs until March 27th. Discounts of up to 92% for cash payments will be available, depending on the credit transaction and the customer's terms and conditions. Payments can also be made in 36 fixed monthly installments.
In total, there are 21,000 corporate clients of Banco do Brasil in the state of Rio who have debts with the financial institution and are eligible to participate in renegotiations.
Lectures for dissemination
To publicize the possibility of debt renegotiation, lectures will be held between the 9th and 17th of this month in Rio de Janeiro, Duque de Caxias, Niterói, Volta Redonda, Petrópolis, Teresópolis, Três Rios, Itaperuna, Nova Friburgo, and Campos. The following day, at the locations where the lectures were held, business owners will receive scheduled and personalized services.
Banco do Brasil also announced the negotiation of existing debts under the BNDES PER credit line, an emergency program for rebuilding municipalities affected by natural disasters. Business owners with outstanding debt under this credit line will be able to renegotiate their operations for up to 120 months.
For Angela Costa, president of the Commercial Association, the partnership will stimulate the Rio de Janeiro economy and thus enable investments to generate jobs and income. "This campaign is very important because companies with outstanding debts are unable to access new credit. The agreement will allow renegotiation on attractive terms, including for debts already settled in court," she said.