BNDES president makes online speech with the participation of President Jair Bolsonaro. Measures are to combat the effects of coronavirus
This Sunday (22), the president of the National Bank for Economic and Social Development (BNDES), Gustavo Montezano, made a statement in the company of President Jair Bolsonaro about 4 economic measures that aim to inject R$55 billion into the country's economy.
The purpose is to cushion the current economic effects of the coronavirus pandemic. In Brazil, 1,128 Brazilians have already confirmed cases of the virus.
Summary of measures:
Application of R$20 billion in the transfer of PIS/Pasep funds to the FGTS, allowing workers to make new withdrawals. The Ministry of Economy will be the agency responsible for the operation. R$19 billion in refinancing for direct operations with the BNDES. R$11 billion in refinancing for indirect operations with the BNDES; and R$5 billion will be applied to working capital for micro, medium and small companies.
Jair Bolsonaro took part in the announcement at the Palácio da Alvorada. During the broadcast, the president said he was concerned about maintaining jobs in the country due to the coronavirus. “It could be fatal for certain segments of society. The elderly and those with health problems, this worries us a lot. Life comes first. But, on the other hand, not losing our jobs is very important. After all, the people who work with those who may be infected in the future need to have their jobs guaranteed.”
Benefit companies
Montezano said the measures announced this Sunday are intended to benefit 150,000 companies that employ around two million people. “It’s a temporary crisis. In a few months we’ll be back to our normal lives. It’s important to keep these structures stable.”, stated the president of BNDES.
The refinancing measures will last for 6 months. The period may be extended if the coronavirus pandemic continues.
The bank's president said that other measures will be announced in the coming weeks. The following are being studied:
- States and municipalities – from R$10 billion to R$20 billion in liquidity for federative entities. The topic is being discussed with the Secretary of Treasury;
- Airlines – the bank is analyzing measures for the entire sector. Montezano anticipated that the resources will have to be used for Brazilian operations;
- Tourism, bars and restaurants – “Our goal is to have mechanisms that assume risks for these entrepreneurs. When we can create a fund or a guarantee that gives the sector the breathing space to cross the bridge, the capital is available,” he said.
Sale of shares
The president of BNDES said that the bank's divestment policy is suspended for now. “At the moment, any sale of shares becomes very challenging. In the market, with such a volatile situation, it is very difficult to sell any type of share. We are waiting for things to return to normal. Then we will return to discussing the bank's possible divestment,” announced Montezano.