Mercadante defends the continuation of the emergency credit program created during the pandemic.

Reuters -The president of BNDES, Aloizio Mercadante, stated this Monday that the government needs to extend the Emergency Credit Access Program (FGI Peac), a mechanism created during the pandemic and aimed at supporting micro and small businesses.

At an event with business leaders in Rio de Janeiro, Mercadante also stated that the BNDES (Brazilian Development Bank) cannot have only one interest rate like the Long-Term Rate (TLP) and that he supports the Minister of Finance, Fernando Haddad, in drafting the new fiscal framework.

"It is necessary to renew the FGI Peac because there is an aversion to credit, there is significant financial instability after the Americanas episode," said Mercadante, referring to the retailer's judicial reorganization.

"The FGI Peac is a guarantee fund that mitigates risk. With 20 billion reais, we launched more than 90 billion in credit," said Mercadante. "We need to leverage and extend the FGI Peac to be able to fuel credit for the productive sector," he added.

In turn, the president of the Federation of Industries of the State of São Paulo (Fiesp), Josué Gomes, who was present at the same event, stated that if interest rates in the economy do not fall, the industrial policy advocated by the government will not be effective.

"If interest rates don't go down, there will be no point in implementing industrial policy in Brazil," said Gomes. "The interest rate in Brazil today is inconceivable," he added.