Lula again criticizes interest rates and says he expects “cheap money” from Spain

In a new round of criticism of the Central Bank due to the current interest rate at 13.75%, President Luiz Inácio Lula da Silva (PT) said, earlier this Tuesday afternoon (25) that he expects Spain to lend money “cheaper” for entrepreneurs to invest in Brazil.

The statement was given at the closing ceremony of the Spain-Brazil Business Meeting, held shortly after his visit to Portugal, where he was from last Friday (21) until this morning. Lula gave a half-read and half-improvised speech on the relationship he has had with the European country since the first government, and on the investments that the Spaniards make in Brazil – around US$ 10 billion, he said.

Lula said that, in three months of government, he already had three meetings with governors in which he asked them to present the priority projects in their states. And that, with these demands that will be presented in May, he will go in search of internal and external resources for investments.

According to him, Brazil can offer the Spaniards “market and projects”, in addition to government credibility for foreign investment, predictability and economic, political and social stability.

“This is how we are going to make Brazil reduce the interest rate, because it is impossible to make investments with the interest rate at 13.75%. I hope that Spain will put money to borrow more cheaply so that we can have businessmen who come here to borrow money”, she said.

The speech took place hours after the president of the Central Bank, Roberto Campos Neto, told the senators of the Economic Affairs Commission (CAE) of the Senate that he has no forecast of when the interest rate will begin to be reduced in the country.

Agreement with the European Union and war in Ukraine

Still during the ceremony in Madrid, Lula stated that he hopes that the trade agreement between Mercosur and the European Union will be accelerated with the rotating presidency of Spain in the European bloc in the second half. According to him, there was a “happy coincidence” of Brazil presiding over the South American bloc in the same period.

“I think that Spain, in the presidency of the European Union, will be able to help a lot in the conclusion of this agreement that I thought would be done in my mandate, and this agreement was not done. I hope we can do it now”, said Lula offhand.

Lula returned to comment on the situation of Russia’s war against Ukraine, emphasizing that he is against the conflict – days after speeches in which he stated that there was a shared responsibility between the two countries – and that he is committed to “searching for partners” to find a path for peace.

The president once again criticized the previous government for what would be an “absence” of relations with governors and other countries, economic growth, among other topics.