Government will count on IMF support to formulate fiscal anchor, says Haddad

Finance Minister Fernando Haddad said that the Brazilian government will rely on the technical support of the International Monetary Fund (IMF) to formulate a proposal for a new fiscal anchor for the country. The support was offered by the organization during a meeting between Haddad and the director general of the IMF, Kristalina Georgieva, at the World Economic Forum, in Davos.

“Aware of our discussion on the fiscal anchor, the IMF made its technical team available to Brazil so that it becomes aware of all the rules in force, which are working more and less well for us to prevent and bring to Congress the most credible and sustainable fiscal anchor,” Haddad told reporters in the Swiss Alps.

Faced with the international political scenario, the IMF showed concern about political sustainability in Brazil, according to Haddad.

“This is very important at the moment we are living. There is no point in having fiscal rules that do not take social responsibility into account,” he said, adding that it is in democracy that people decide their destiny by voting.

bilateral meetings

The Brazilian minister also commented on the bilateral meeting he had with José Antonio Ocampo, Minister of Economy of Colombia. The focus, according to him, was the integration of Latin American countries. “There is a huge desire for integration among Latin American countries,” he stated.

According to Haddad, in a world with powers such as the United States, Europe and China, Latin American countries need to be integrated and articulated in negotiations with other economic blocs in order to play a role on the international stage.

“Disunited we will not go far in a world that has the United States, the European Union, China are economic giants. To play a role in this world, we need to be more integrated”, said the minister.

international investors

Asked about the message he has been giving to international investors, Haddad repeated the focus on returning to the level of income and expenses before the elections and the pandemic, when they were close to each other. This is the way to approve a fiscal and tax reform to give sustainability to the Brazilian debt.

“International investors are eager to invest in Brazil because the country has returned to the negotiating table on democracy, the environment, political stability,” stated the minister. “I want to believe that in the first quarter we will address these reforms and that will give the international community a lot of security”, he concluded.