Minister Fernando Haddad says he is in contact with the Central Bank and Brazilian banks to assess the impact of the SVB bankruptcy in the country.| Photo: Diogo Zacarias/MF disclosure

It is still not possible to estimate the impact that the bankruptcy of the Silicon Valley Bank (SVB), in the United States, will have on the Brazilian economy, according to the Minister of Finance, Fernando Haddad. He said, this Monday morning (13), that he is in constant contact with the president of the Central Bank, Roberto Campos Neto, and with the main executives of other banks in the country about the case.

“What happened is serious. the Fed [Banco Central
dos EUA] took action over the weekend and the monetary authority in Brazil will have to take some action due to the effects on the peripheral economies. That’s not clear yet and we’ll follow along throughout the day. Me and Gabriel Galípolo [secretário executivo do Ministério da Fazenda] we are in tune with the Brazilian banks and with the president of the BC”, reported Politics 360 about Haddad’s participation in an event promoted by the newspapers O Globo and Valor Econômico.

In the morning, President Joe Biden said that deposits of up to $250,000 are guaranteed to account holders, and that he will ask Congress and banking regulators to strengthen rules for banks to prevent this type of failure from happening again. SVB had about $209 billion in assets at the end of last year, making it the 16th largest US bank.