Guedes wants BNDES to return R$ 200 billion to the government.
“From BNDES, for example, we want the Union's money back, we want to unwind. We want the 500-odd billion (reais) that were given. Has 300 already returned? Only 200 are missing,” he stated.
BRASILIA (Reuters) - Economy Minister Paulo Guedes argued on Wednesday that the National Bank for Economic and Social Development (BNDES) should return the remaining funds it owes to the federal government, as part of a privatization of the country's credit market.
"From BNDES, for example, we want the Union's money back, we want to unwind. We want the 500-odd billion (reais) that were given. 300 have already returned? Only 200 are missing," he stated.
In his first speech in office, Guedes strongly criticized a policy that he said directed credit "towards friends," with "very low interest rates," while the free credit segment—in which rates are freely set by banks—continues with "very high interest rates."
According to Guedes, this practice drives away private investment and rewards rentiers, while simultaneously tightening financing conditions for most of the population.
"BNDES is shrinking its balance sheet a bit... and life is getting a little harder for those who lived in the shadow of the State. And that's how it has to be. We are going to privatize the credit market," he stated, to applause from the audience.
The minister said that if there is any targeted credit offer, it should be for micro-entrepreneurs. But he also considered the need for a public bank for this purpose, pointing out that the technically correct way to address the issue is to include the explicit subsidy in the Union's budget while simultaneously increasing banking competition "brutally".
In 2018, BNDES completed the early repayment of 130 billion reais to the Treasury. Since 2015, the settlement of debts with the Union has totaled 310 billion reais. The funds were loaned to BNDES during the PT (Workers' Party) governments to support the development bank's financing programs.
Regarding Caixa Econômica Federal and Banco do Brasil, Guedes stated that the team nominated to lead the banks is focused on discovering valuable assets within the institutions.
Present at the event, the future president of Caixa, Pedro Guimarães, said this Wednesday that the state-owned bank should take at least two subsidiaries public in 2019. He also stated that Caixa should sell minority stakes in subsidiaries that will be listed on the stock exchange.