Isaac Sidney, president of the federation, mentioned the need for reforms, improvements in the credit market and public-private partnerships
The president of Febraban (Brazilian Federation of Banks), Isaac Sidney, suggested this Thursday (April 20, 2023) that he expected a little more from the new fiscal framework presented by the president’s economic team Luiz Inacio Lula da Silva (PT). Statement was given during a speech at the Lead Brazil ConferenceIn London.
“Some of us here –and I include myself– might even say that we expected a little more from the framework”, said Sidney. “But I consider it positive that the government has completed this stage”, he completed.
The executive praised the government’s primary result target forecasts, such as the idea of zeroing the primary deficit in 2024, classifying them as “ambitious”.
In Sydney’s view, “there is no social policy that will bring effective results if the economy does not return to growth, just as there will be no sustainable economic growth if it is not accompanied by improvements in the quality of life of the population”.
Along the same lines, he emphasized the need for partnerships between the State and the business community. “The State –this is not news to anyone– no longer has fiscal space to expand its investments indefinitely. There is a limit for everything and there is no way for the State to meet all the needs of the economy.”
He also mentioned the need to promote improvements in the credit market, especially with a new legal guarantee, which is already being worked on by the government, in addition to an agenda of reforms, with emphasis on taxation.
“Febraban has actively participated in the discussion of the tax reform on consumption and we understand that it has great potential to make credit cheaper”, said Sidney.
The president of the federation of banks also stated that the history of Brazil is “stuffed” of errors that lead to “mediocre growth for a long time, in several governments, regardless of pandemics and wars”.
In the end, he cited the collapse of North American and European banks as a “opportunity to show the world the excellence of Brazilian banking regulation” It is “the supervision and monitoring of our Central Bank”. According to Sidney,the brazilian banking system is a great asset of the country, it is modern and resilient and needs to be preserved”.
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