An eventual resumption of the BNDES’ role as an investment bank for large companies, the “national champions”, could harm the dynamics of interest rates in the country, according to CNN economics specialist Sérgio Vale.
This possibility was mentioned by former president Luiz Inácio Lula da Silva (PT), in an interview with CNN last Monday.
At the time when BNDES played an important role in the investment of ‘national champions’, the institution received funds from the National Treasury, which ended up not generating the investment rate that was expected, explains Vale.
“In the end, what we had is an increase in gross debt, and studies show that, in the past, because of heavy subsidies, which forced interest rates down, the basic interest rate had to be higher,” he says. .
The expert points out that the next government should focus on a few reforms next year, “especially the tax reform, and leaving the BNDES as it is now, going back to what was the past will bring insecurity to the market and will not help in the very dynamics of interest rate”.
See full interview in the video.
*Posted by Ligia Tuon
Source: CNN Brasil
Joe Jameson, a technology journalist with over 2 years of experience, writes for top online news websites. Specializing in the field of technology, Joe provides insights into the latest advancements in the industry. Currently, he contributes to covering the world stock market.
