The Senate will hear from the president of Banco do Brasil to explain alleged credit restrictions for states.
The request was submitted by Senator Renan Calheiros, father of the governor of Alagoas, Renan Filho, one of the states reportedly experiencing difficulties.
BRASILIA (Reuters) - The Senate's Economic Affairs Committee (CAE) approved on Tuesday a request to hear from the president of Banco do Brasil, Fausto de Andrade Ribeiro, regarding alleged restrictions on credit operations for governors of states that are in opposition to the federal government.
The request to hear from the president of Banco do Brasil was submitted by Senator Renan Calheiros (MDB-AL), father of the governor of Alagoas, Renan Filho (MDB), who governs one of the states that are reportedly experiencing difficulties in contracting this type of operation.
This issue was reported in an article in the Folha de S.Paulo newspaper at the end of last January.
According to Renan, in the justification for the request, "the issue is so serious" that Alagoas had to take Banco do Brasil to the Supreme Federal Court (STF), "due to the financial institution's refusal to grant a loan already approved by the State Legislative Assembly."
"As is well known, Alagoas is an example of fiscal adjustment in Brazil, and the resources requested from Banco do Brasil are specifically intended for carrying out important productive investments that generate employment and income," the senator emphasized.
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