The president of the National Bank for Economic and Social Development (BNDES), Aluizio Mercadante, said this Monday (6) that he intends to discuss the TLP (Long-Term Rate). However, he warns that he does not intend to “compete with the private financial sector”.
“We will debate the adjustment of the TLP, we do not want and are not demanding a pattern of subsidies in the budget as happened in the past, but a more competitive interest rate, above all, for micro, small and medium-sized companies”, he said in his inauguration speech.
Mercadante says that the bank’s intention is to boost the digitalization of micro, small and medium-sized companies and cooperatives with indirect credit of R$ 65 billion, via private credit guarantees.
“We are going to support with more determination the growth and modernization of micro, small and medium-sized companies, which are great job and income generators”.
“If we want to have a future, we need a more present and active BNDES and a balanced relationship with the Treasury, but we do not intend to dispute the market with the private financial system. This is not the role of the BNDES”, he added.
The TLP was created in 2017 to prevent the institution from adopting a lower rate than that defined by the Central Bank. Banco de Fomento’s previous policy was criticized for causing an imbalance between the public and private sectors in the corporate credit sector.
The model was used in PT governments, when hundreds of billions of reais in National Treasury resources were used to finance credit with interest rates below the Selic for sectors elected as “national champions”. The result was an increase in the public debt and a drop in the investment rate.
“Currently, the TLP presents enormous volatility and represents a financial cost above the cost of the federal public debt, which unnecessarily penalizes micro, small and medium-sized companies”, said Mercadante in his speech.
According to him, the institution can contribute to “reducing risk, opening new markets, extending deadlines and preparing good projects for private investment”.
*In update
Source: CNN Brasil
I am an experienced journalist, writer, and editor with a passion for finance and business news. I have been working in the journalism field for over 6 years, covering a variety of topics from finance to technology. As an author at World Stock Market, I specialize in finance business-related topics.
