The Minister of Finance, Fernando Haddad, last Monday (3) asked the president of the Central Bank (BC), Roberto Campos Neto, for the possibility of paying debts in installments using Pix, the BC’s instant transfer system. According to the minister, the tool would help to make credit cheaper in the country.
“I was talking yesterday with Roberto Campos Neto about paying in installments through Pix. It could be a great innovation in our banking system for you to pay in installments using this tool. This improves competitiveness and credit conditions in the country,” said the minister at a virtual event promoted by an investment bank.
According to Haddad, the proposal is part of a credit stimulus package. The minister again informed that the government is preparing 12 measures to improve credit conditions, half of which were approved by the Central Bank.
unrolls
The minister also spoke about the Desenrola Program, which intends to renegotiate up to R$ 50 billion in debts of 37 million individuals. According to Haddad, the program’s provisional measure is ready and it is only waiting for B3, the Brazilian stock exchange, to complete the system that will be used by the government and creditors.
Regarding the fund that will cover the negotiations, there are already R$ 11 billion reserved in the Budget. Last month, the minister had stated that the fund, formed with resources from the National Treasury, would have about R$ 10 billionbut the amount was recently increased to R$15 billion.
This guarantee fund will cover eventual defaults by people who adhere to the renegotiations. Desenrola will cover all negative individuals, but those who earn up to two minimum wages (R$ 2,604) will be able to renegotiate under more advantageous conditions, because they will have Treasury contributions to the guarantee fund.
inflation targets
Haddad also said he discussed with Campos Neto this Monday a possible change in the inflation target calendar for the coming years. The minister, however, denied any intention of changing the inflation target for this year, set by the National Monetary Council at 3.25%, with a tolerance margin of 1.5 points, more or less.
“[Nos próximos anos] it will be time to verify if the goals were well calibrated. If it is the case of maintaining, if it is the case of not adopting the Gregorian calendar, if it is the case of making that continuous goal that most countries adopt”, declared Haddad. According to him, only Brazil and Turkey set goals for the calendar year. The other countries adopt the continuous calendar system, in which the Central Bank reaches the target little by little, by approximation.
The minister repeated his intention to seek to harmonize monetary and fiscal policies. According to Haddad, sending the new fiscal framework to Congress and approving the tax reform could generate a “growth shock” in 2024, if the Central Bank contributes to reducing interest rates.
“If the monetary policy meets the announced fiscal results, with the blessings of Congress and the Judiciary, we will reach the end of the year with a favorable economic environment”, emphasized the minister.
The meeting between Haddad and Campos Neto took place late Monday afternoon, at the Ministry of Finance building. The BC president walked in and out of the garage, without speaking to the press. About an hour after the meeting, Haddad said the meeting was a “routine meeting”in which various subjects were dealt with.
