Amid the crisis, Itaú's president says credit will only grow after the elections.
The president of Itaú Unibanco, Candido Bracher, said, amidst the political crisis, that credit for large companies should only start growing again after the elections; according to him, "elections are a natural element of uncertainty every four years"; Bracher indicated a desire to maintain an ultra-liberal economic policy.
247 - Amid the political crisis, the president of Itaú Unibanco, Candido Bracher, stated that credit to large companies should only start growing again after the elections. According to him, the election results in a "natural uncertainty" about the direction of the economy. "There is very little that can be learned about the outcome of the elections until August," the executive told the newspaper. Valor Econômico In reference to the month in which the slates will be defined and announced by the parties. As for lines of credit aimed at individuals and small businesses, the recovery has been occurring in a "vigorous" manner, according to the executive.
"Elections are a natural element of uncertainty every four years. They always, or very frequently, lead to the postponement of investment decisions, especially by large companies. In this sense, they do affect growth, albeit moderately. This is perhaps the main reason why we don't see growth in the loan portfolios of large companies. But I don't foresee any major impacts from the electoral process yet. Naturally, investors hold back a little, but that's how it is every four years," said Bracher.
According to him, "there is very little that can be learned about the outcome of the elections until August. The candidates are still unclear. I see two lines of thought: one that says the next president will not be a traditional politician. Some candidates fit that description. Another interpretation says that the future president needs to have personal characteristics that make him acceptable to the majority, campaign funds, a large base of mayors, and television time. If you think that's the correct line of thought, you'll arrive at the other candidates."
When discussing his electoral preference, the president of Itaú revealed that he wants a president who maintains the ultra-liberal economic policy and signaled support for Geraldo Alckmin, of the PSDB party: "The first is to stop the growth of public debt as a percentage of GDP. To do this, pension reform is necessary. But if only that is done, there will be great frustration. There are a series of other reforms aimed at increasing productivity that will need to be done. I think it's important to look at what candidates with administrative experience have done. And when I do that, I feel relatively reassured. In general, they were fiscally responsible and promoted reforms, focusing on productivity in their states."
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