Brazil's economy anemic, says chief of country's biggest development bank
Paulo Rabello de Castro, president of Brazil's National Social and Economic Development Bank (BNDES)
In a statement made in São Paulo Monday (Aug 14), Paulo Rabello de Castro, president of Brazil's National Social and Economic Development Bank (BNDES), said it will come as a surprise if the bank's loans this year add up to $20 billion—considerably below the $27.5 billion reported in 2016.
“The Brazilian economy is anemic, there's no energy for investment at the pace seen in the past. This appetite for investment must have fallen some 30% at least,” he argued.
Operation Car Wash
Castro was invited to deliver a lecture at the plenary session of the São Paulo Trade Association, and took the opportunity to criticize the effects of Operation Car Wash on investments. He said that the entrepreneurs arrested should be allowed to go back to business in order to guarantee the continuity of the enterprises.
In his talk, he mentioned the difficulty resuming some infrastructure projects and suggested that 10% or 20% of the company held accountable for wrongdoing should be earmarked for a fund directed at the pension system. “[The executive arrested] should be allowed to work more and profit more. We need to get construction works to move,” he maintained.
Profit
Paulo Rabello de Castro talked about the $420 million net profit posted Monday by BNDES for the first half-year. “The bank's main goal is to fight for the good use of public funds, hence the low default rate in our transactions—as our clients are carefully selected and the bank never had to resort to subsidy funds to settle its accounts,” he concluded saying.
Translated by Fabrício Ferreira
Fonte: Brazil's economy anemic, says chief of country's biggest development bank
