“Brazil has no time to lose,” Temer said

At an event celebrating the one-year anniversary of the Law for the Responsibility of State Companies, President Michel Temer said that Brazil's government-controlled firms have succeeded in following the schedule for the enforcement of the new legislation, adding that public institutions like Banco do Brasil, oil-giant Petrobras, and the National Economic and Social Development Bank (BNDES) have fully adapted to the new rules before the estimated time. The changes, the government maintains, have already cut down public debt and raised public companies' market value. In his address, the president once again talked about the current political moment and argued that Brazil must remain functional.

“Brazil has no time to lose,” he said. “We can't allow that anything prevents Brazil from breathing,” Temer added.

The president said that dealing with the country's accounts irresponsibly in search for “easy ovation” is what destroys companies and corrupts Brazil's institutions. “The main idea of this law came about because it was necessary to protect [the companies] from attacks wherever they came from, in an attempt to stop any influence from something that would not lead to efficient management.”

The piece of legislation set forth new rules for the appointment of directors and advisers. For instance, no one who has become affiliated with a political party, is occupying a political position, or has recently run for candidacy is allowed to be named director or adviser. This restriction is aimed at preventing politically motivated appointments for leading positions at state-controlled companies.

It was by taking these precautions, Temer argued, that Petrobras managed to go from losses totaling $1.15 billion to profits adding up to $1.45 billion in one year. “Indebtedness kept growing for seven years, after which state-run companies saw their debts cut down by 24%, which brought about an extraordinary increase in the market value of these firms,” he declared.

Temer reiterated that fiscal responsibility is “the path towards democracy, justice, and development,” and that moving ahead is necessary “for the 14 million Brazilians without registered employment.”

Translated by Fabrício Ferreira