Monday , November 23 2020

Bolsonaro again threatens Brazil's economy and is now attacking BNDES



247 – After threatening Brazil's foreign trade, attacking China, the Arab countries and Mercosur, Jair Bolsonaro threatened the national economy again: he spotted his batteries this Thursday against BNDES, one of the largest developing banks in and today, the main instrument of the federal government for long-term funding and investment in all parts of the Brazilian economy. In a tweet, he said he intends to "open the black box BNDES". His team is studying the end of the bank, founded in 1952.

Attacks on the BNDES began shortly after the coup in 2016 and the Temer government closed the bank for the past two years. By the end of 2018, the government's plan to build a coup d'état is to raise R $ 310 billion from BNDES funds and deliver them to the National Fund. The amount represents more than half of the federal government credit reserve in the institution in 2016 when Dilma was overthrown. In addition, in 2017, the government stopped using the TJLP (long-term interest rate) as a reference for the institution's loans to companies. The much lower rate than the financial market was a powerful tool to finance the country's growth. For comparison purposes, on the date of approval of the change, TJLP was 7%, ie below Selic 9,25% at that time.

By the end of Lula's administration in 2010, the bank tripled to the size of the FHC government and became a global reference as a growth and development bank for countries around the world. In just over 10 years, the bank had loaned over $ 500 billion to finance the country's infrastructure.

Now the Bolsonaro team is planning to root out Temer's offense. a group led by Paulo Guedes is studying the disappearance of BNDES (here).

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