Haddad can expect loyalty, but don’t ask him not to say what we think, says Mercadante – 03/20/2023 – Market

The president of the BNDES (National Bank for Economic and Social Development), Aloizio Mercadante, promised this Monday (20) “total loyalty and partnership” to Minister Fernando Haddad (Finance) in the discussion of the new fiscal framework.

Mercadante, however, said that the bank will not fail to express its views on issues under debate in the country. The speech took place during a seminar at the BNDES headquarters, in Rio de Janeiro, which should address issues such as fiscal and monetary policy.

The event takes place at a time when the Ministry of Finance is finalizing the final details of the proposed new tax rule. The text was presented last week to President Luiz Inácio Lula da Silva (PT).

“We are waiting for the new fiscal framework. Minister Haddad can expect total loyalty and partnership from me and the bank, contrary to the speculation that is published. We are not here for any other reason. He has no expectation of replacing anyone, much less of competing” , said Mercadante.

“Now, don’t ask us to stop saying what we think to help the government to get it right, to find the best path, to seek the best practices. That’s what we’re here for”, he added.

The event was named “Sustainable Development Strategies for the 21st Century”. The holding of the seminar had been announced by Mercadante in February. According to him, one of the objectives of the meeting would be to analyze international experiences in areas such as fiscal policy.

At the time, the creation of the seminar raised a debate about possible competition between the BNDES and the Ministry of Finance in the discussion of the country’s new fiscal framework, which should replace the expenditure ceiling.

At the time, Mercadante rejected this competition and said that the new proposal would be up to the portfolio commanded by Haddad (PT).

This Monday, the president of BNDES stated that the event was scheduled for the second half of March to align the schedule with the agenda of economist Joseph Stiglitz, Nobel Prize in Economics. Stiglitz is one of the guests at the seminar.

Mercadante denied that the meeting had been scheduled due to the proximity of this week’s Copom (Central Bank Monetary Policy Committee) meeting. The BC has been the target of criticism from President Luiz Inácio Lula da Silva (PT).

These criticisms were motivated by the current level of interest in the country – the Selic rate is at 13.75% per year. “That shy BNDES bank is over. It will debate, invest and boost the country’s growth,” said Mercadante.

The list of those present in the audience at the BNDES seminar included economists, businessmen and politicians, such as PT president Gleisi Hoffmann and former finance minister Pedro Malan. The event ends this Tuesday (21).