Requião: Temer's package of measures 'only hurts the workers'
Senator Roberto Requião (PMDB-PR) launched a scathing attack this Friday, the 16th, against the economic package announced by Michel Temer (PMDB); according to the parliamentarian, the measures only benefit the banks; "The economic package is just another favor for banks. Following the same path as PEC 55," he declared; for Requião, the government is advancing on the FGTS (Brazilian severance pay fund) to remove risks from banks while screwing over workers in every way possible; read the full text of the measures.
By Esmael Morais, in your blog - Senator Roberto Requião (PMDB-PR) launched an attack this Friday (16) against the economic package announced yesterday (15) by the illegitimate Michel Temer (PMDB). According to the parliamentarian, it only helps the banks.
"The economic package is just another favor for the banks. It's following the same path as PEC 55," the congressman declared.
According to Requião, the government is pushing through the FGTS (Brazilian employee severance fund) to remove risks from banks while screwing over workers in every way possible.
The six largest banks in the country — Itaú Unibanco, Bradesco, Banco do Brasil, Caixa, Santander, Banrisul and Paraná Banco — had a profit of R$ 55 billion in the fiscal year of 2015.
As you can see, Michel Temer is a kind of inverted Robin Hood: he takes from the poor to give to the rich bankers.
Below is a technical note from the senator's office regarding part of the package:
Technical Note/Payroll Loan and FGTS (Brazilian Severance Indemnity Fund)
J. Carlos de Assis*
The payroll loan system was a terrible invention of the Lula government to facilitate bank credit for employed people, generally at exorbitant interest rates. However, the system only worked when income and employment were growing. In that case, the debtor had immediate credit to buy consumer goods and pay with their increasing salary (the minimum wage was rising above inflation), or even a stable one. If they lost their job and their salary fell, they would be stuck with the bank, committing increasingly larger portions of their income to installments – or becoming delinquent due to lack of income. In this case, it is the bankers who run the risk of default, as the debtor has no way to pay. This is what is happening to millions of Brazilians. It is to favor banks against default that the government has just announced the measure to allow the use of part of the FGTS (Brazilian severance pay fund) to pay off debts of employed or unemployed workers. Yet another outrageous move to benefit the banks, which, without incurring any losses, thereby reduce the damage caused by defaults.
J. Carlos de Assis He is a journalist and economist, with a doctorate from Coppe/UFRJ, and a member of the Alliance for Brazil. He advises the office of Senator Roberto Requião.
Read the full text of the measures announced by Temer: