BTG is coordinating 50 debenture issues in Brazil, says Esteves

The chairman and senior partner of BTG Pactual, André Esteves, said that even with the high interest rate scenario and on the eve of the elections, BTG is coordinating around 50 debenture issues this quarter. And most of these resources will be used to finance investments in infrastructure.

“It means that 50 different companies will finance themselves in the local market, regardless of any subsidy, to basically make an investment,” he said at a BTG event on Thursday afternoon (18).

This is an indication that the private sector managed to “wean” the previous structure, where the main financier was the National Bank for Economic and Social Development (BNDES), argued the executive.

The change in private financing is a reflection of the change in the interest structure in Brazil, highlighted Esteves. As a result, Brazil’s neutral equilibrium interest rate is in the single digits. “The civilized interest rate is the biggest driver of investment,” he said.

When talking about the economy, Esteves argued that the fiscal worsening in Brazil due to the increase in spending with the pandemic was much smaller than in developed countries.

While debt – whether net or gross – in relation to Gross Domestic Product (GDP) in Brazil rose by 3 percentage points, in European countries and the United States, the jump was much greater, around 20 points, he said. You’ve been

And even with the most adverse environment, Brazil will have GDP growth this year and a reduction in unemployment, said Esteves. “We cannot forget that we had two years of a pandemic.”

social programs

The BTG partner said he is an advocate of cash transfer programs, but pointed out that they need to target the right people. “We don’t need to save on these programs, Brazil has the fiscal capacity to do that,” he said. “But I think Brazil needs to use the programs to help the population at the base of the pyramid take the next step.”

Challenges

Among the challenges for the next government, Esteves spoke of education and the environment. “I think that people here still do not understand the importance of the environmental issue at a global level.”

political scenario

The BTG partner also stated that he was “very calm” with the strength of Brazilian institutions. And, contrary to what the fierce polarization and inflamed political discourse on social media makes it seem, he believes that Brazilian society is much more at the center, whether center-right or center-left, than at the extremes.

“We are institutionally balanced,” said Esteves, at the BTG event to discuss the economic and political scenario in Brazil. “We were laying institutional bricks that, in my opinion, created a very clear wall of institutional protection for society”, he commented. “I think that Brazilian society is much more at the center of what people think or what internet groups deceive us on a daily basis.”

Asked about the governance of the next president, Esteves argued that there must be no advances in the other’s field. “Until something better is invented, the model of independence of the three powers is the one that works best. Now, let it have independence.”

From an institutional point of view, the chance of someone sitting alone in the president’s chair making a mistake is much higher than 500 people in Congress making a mistake, argued Esteves. The advance that needs to happen is a gain in transparency in the relationship between powers, he added. “I don’t think the arrangement is bad.”