The Minister of Finance, Fernando Haddad, said this Monday (23) at a press conference in Buenos Aires that Banco do Brasil Banco do Brasil will not take a risk when financing exports to Argentina.
Previously, he had stated that the new financing plan for exports from Brazil to Argentina would have Banco do Brasil as the agent that will issue the letters of credit.
According to Haddad, the agreement aims to have a guarantee fund, which is sovereign and will guarantee the letters of credit issued by BB for Brazilian exporters. “Neither the Argentine bank, which is financing an importer, nor the Banco do Brasil, which is guaranteeing the exporter, are involved in a risk. That is why we are negotiating with Argentina, a system of guarantees from Argentina to Brazil”.
For the minister, the intention is to re-establish a credit line for Argentina, but first it is necessary to establish a kind of guarantee fund that allows extending the terms of export financing.
“We have a team at the Ministry of Finance that is dedicated to finding a formula that provides a guarantee, not only for exporters, but also for Brazil and for Banco do Brasil – which will finance exports by issuing a letter of credit”, explained the Minister.
Haddad said he told Sérgio Massa, Argentina’s economy minister, that they need to find a solution to this equation. “We have no difficulty in seeing financing levels that allow Argentina to establish and respect its commitments and manage to address its short-term problems”, he declared.
Regarding the time in which this could happen, Haddad highlighted that he is seeing this agreement as a historic obligation and intends to reinstate the debate on integration.
“From my point of view, [a negociação] it should be a little more radical than what has been tried so far. I think Mercosur was a great initiative, but I think the time has come for us to be more ambitious in our regional pretensions”.
Banks
Banks pulled the Ibovespa down on Monday, with their shares registering sharp falls.
Banco BTG Pactual closed down 5.29%, being quoted at R$10.75. Banco Santander fell 4.31%, worth R$ 13.33. Banco Bradesco also had a negative result, closing with a drop of 3.19% in the amount of R$12.45.
Banco do Brasil had the best performance, with a drop of 0.75%, but reached -1.1% shortly after Haddad’s speech. According to data from TradeMap, in 2023, BB’s shares had the best performance with an appreciation of 14.51%.
Check out the full interviews in the videos above.
Source: CNN Brasil
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