Belluzzo warns: savings account adjustments will bankrupt the country.
Stock market crash, credit crisis, damaged banking system, and a possible reduction in the country's risk rating; all of this could happen if the Supreme Court orders the correction of economic plans in savings accounts, according to economist Luiz Gonzaga Belluzzo.
247 - Economist Luiz Gonzaga Belluzzo, one of President Dilma Rousseff's main advisors, warns: if the Supreme Federal Court forces banks to pay the adjustments for economic plans in savings accounts, the country will literally go bankrupt.
In an article published in Carta Capital magazine, called "The Correction of Savings Accounts," he was categorical:
"The inevitable financial and credit crisis would cause stock markets to collapse and devalue other financial assets owned by the same applicants demanding the restoration of monetary correction indices. Certainly, the Central Bank would have to act swiftly to provide liquidity to the damaged banking system. This would be followed by an explosion of public debt, which, in turn, would undermine the already precarious economic stability."