Meirelles backtracks and says there is no rush to extinguish the Sovereign Fund.
During an event promoted by the France-Brazil Chamber of Commerce, held this Monday, the 30th, in São Paulo, the Minister of Finance, Henrique Meirelles, said that "there are no reasons" for the Sovereign Wealth Fund to continue existing, but unlike what he had said last week (when he requested urgency in its extinction), Meirelles says there is no rush to sell shares in the Fund; "Don't try to anticipate the movements or you may lose money," said Meirelles; shares of Banco do Brasil, which are part of the fund's composition and which fell sharply last week due to the announcement of the Fund's end.
Do Infomoney - There is a key issue in Brazil today, which is stabilizing the growth trajectory of public debt, says Finance Minister Henrique Meirelles, during an event promoted by the France-Brazil Chamber of Commerce, held this Monday (30) in São Paulo (SP).
Once this stability is achieved, it is necessary to give consistency to this trajectory in order to make it sustainable, explains the minister. During the event, he began a presentation called "Diagnosis and corrective actions for public accounts".
Regarding the BNDES (National Bank for Economic and Social Development), Meirelles says that it will continue to be an important financing agent for projects, given that the proposed total payment of R$ 100 billion to the National Treasury is only 19% of the amount the Treasury transferred to the Bank (R$ 520 billion). "What cannot happen is for this money to remain idle in investments instead of being applied to projects," he explains.
Regarding the Sovereign Wealth Fund, there is no reason for it to continue existing. But, unlike what he said last week (when he urged its extinction), Meirelles says there is no rush to sell stakes in the Fund. "Don't try to anticipate the movements or you might lose money," Meirelles said. The quote refers to the shares of Banco do Brasil (BBAS3), which are part of the fund's composition and which fell sharply last week due to the announcement of the Fund's end.read more).
According to the Finance Minister, the sales will be made at opportune times to avoid impacting the market, and the small share of the Fund's sales will not significantly affect the share price.
Concluding the presentation, Meirelles emphasized that all the measures announced are realistic and aim to bring back the 11 million Brazilians who are currently unemployed, reduce distrust among business owners, reduce insecurity among employed workers, and guarantee retirement in 5, 10, or 15 years.
"That's the diagnosis, and those are the measures. But other measures will follow. The most important thing is that they will all stem from one fundamental principle, which is the spending limit," Meirelles concludes.