Rubem Novaes believes that the effect will last for three to four months. “There is an excess of panic in relation to the coronavirus”, says president of BB
The president of Banco do Brasil (BB), Rubem Novaes, said that the epidemic of the new coronavirus (Covid-19) will have consequences for the Brazilian economy, but that the effect will be temporary. He pointed out that economists from the Central Bank and the government's economic team have estimated that it will be 0.5% the degree of impact the outbreak can have on Gross Domestic Product (GDP) growth.
According to the president of BB, 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 take three months, four months. Afterwards, life goes on as normal”, said Novaes, in a lecture at the Commercial Association of Rio de Janeiro. For him, there is “a certain excess of panic” in relation to 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 of the fourth quarter of 2019, which increased by 0.5% compared to the period previous. Compared to 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 pulled GDP down was the government sector. It is government spending that, when falling, pulls GDP down. This shows that the government is adjusting. A contraction in public spending is necessary. The private sector, the healthiest part of the economy, the most efficient, is growing above 2%”, said the president of BB.
Renegotiating debts
Banco do Brasil and the Commercial Association of Rio de Janeiro signed this Friday (6th) a technical cooperation agreement for the launch of the “Vem que Dá” campaign, aimed at negotiating the debts of micro, medium and small companies with headquarters in the state of Rio. The action has the support of the Federation of Commerce in Goods, Services and Tourism of Rio de Janeiro (Fecomércio RJ) and the Brazilian Service to Support Micro and Small Companies (Sebrae Rio).
The bank will offer pre-approved proposals during the campaign period, which starts on Monday the 9th and will last until the 27th of March. Discounts reach up to 92% for cash settlements, according to credit operations and the customer's conditions. There will also be the possibility of payment in installments in 36 fixed monthly installments.
In total, there are 21,000 corporate customers of Banco do Brasil in the state of Rio who owe a debt to the financial institution and who are eligible to participate in renegotiations.
Lectures for publicity
To publicize the possibility of debt renegotiations, lectures will be given between the 9th and 17th of this month, in Rio de Janeiro, in Duque de Caxias, Niterói, Volta Redonda, Petrópolis, Teresópolis, Três Rios, Itaperuna, Nova Friburgo and Campos. The following day, in the places where the lecture was held, businessmen will have scheduled and personalized service.
Banco do Brasil also announced the negotiation of existing debts in the BNDES PER credit line, an emergency program for the reconstruction of municipalities that were affected by natural disasters. Entrepreneurs who have debts in this line of credit 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 state's economy, and thus enable investments to generate jobs and income. “This campaign is very important, because companies that have outstanding debts do not have access to new credits. The agreement will allow renegotiation under attractive conditions, including debts already filed.” she said.
