President of the BNDES makes an online statement with the participation of President Jair Bolsonaro. Measures are to combat the effects of the 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 on 4 economic measures that aim to inject R$ 55 billion into the country's economy.
The purpose is to cushion the current economic effects due to the coronavirus pandemic. In Brazil, there are already 1,128 Brazilians confirmed with the virus.
Summary of measures:
Application of R$ 20 billion in the transfer of PIS/Pasep resources to the FGTS, giving the possibility of new withdrawals to the worker. The Ministry of Economy will be the body responsible for the operation. R$ 19 billion in refinancing for direct operations with BNDES. R$ 11 billion in refinancing for indirect operations with BNDES; and in working capital for micro, medium and small companies, R$ 5 billion reais will be invested.
Jair Bolsonaro participated in the announcement at the Palácio da Alvorada. During the broadcast, the president said he was concerned about maintaining jobs in the country because of the coronavirus. “It can be fatal for certain layers of society. The elderly and those with health problems, this worries us a lot. It's life first. But, on the other hand, not losing jobs is very important. After all, the people who work with those who can be infected up front have to have their job guaranteed”.
Benefit companies
Montezano said that the measures announced this Sunday are intended to benefit 150,000 companies that employ around two million people. “It is a transitory crisis. In a few months we will go back to our normal lives. It is important to keep these structures stabilized.”, said the president of BNDES.
The refinancing measures will last for 6 months. The period may be extended if the coronavirus pandemic continues.
The president of the bank informed that other measures will be announced in the coming weeks. Under study are:
- States and municipalities – from R$ 10 billion to R$ 20 billion liquidity for federal entities. The topic is being discussed with the Treasury Secretary;
- Airlines – the bank is analyzing measures for the entire sector. Montezano anticipated that the funds would have to be used for Brazilian operations;
- Tourism, bars and restaurants – “Our goal is to have mechanisms that assume risks for these entrepreneurs. By the time we manage to set up a fund or a guarantee that will give the sector the strength to cross the bridge, the capital will be available.” he said.
sale of shares
The BNDES president said that the bank's divestment policy is suspended for the time being. “At the current time, any share sale becomes very challenging. In the market, with such a volatile situation, it is very difficult to sell any type of stock. We are waiting for normalization. Then we will discuss the possible divestment of the bank again”, announced Montezano.
