The Minister of Economy, Paulo Guedes, said today (18) that as soon as the National Congress resumes activities, after the recess, the government will seek to approve measures to support the capital market. Guedes participated in the inauguration ceremony of the new president of the Securities and Exchange Commission (CVM), lawyer and professor João Pedro Barroso do Nascimento, in Rio de Janeiro.
Guedes highlighted that Brazil is changing regulatory frameworks in all sectors of the economy. He did not detail the measures he intends to support the approval.
In the minister’s assessment, the national capital market will receive many investments. “There are trillions of dollars that are circulating around the world and they will have to reposition themselves”. A lot of productive capital will continue to look for a safe landing. Brazil has facilitating requirements for this, which are proximity and reliability. “The country that is everyone’s friend, doesn’t make war with anyone, it’s us”. He pointed out that Europe needs Brazil to guarantee its energy security and the rest of the world needs to guarantee its food security. “Brazil is close and reliable”. Guedes has no doubt that Brazil will be the great nation that will receive these investments.
growth cycle
For the minister, Brazil is entering a cycle of expansion. He highlighted that despite the cyclical deceleration of economic activity caused by monetary policy (increases in the basic interest rate, the Selic), the result is still positive. He recalled that Brazil has already withdrawn fiscal and monetary stimuli, adopted due to the impacts of the covid-19 pandemic on the economy, and the world is starting this process.
According to the minister, in the last three years, Brazil has faced several challenges, which began with the environmental disaster in Brumadinho, then the covid-19 pandemic, the water crisis and, currently, the war between Russia and Ukraine.
Paulo Guedes also assessed, in his speech, that the facts confirm that growth estimates are being revised upwards, with a reduction in inflation and unemployment levels. “These are facts. The rest (are) narratives,” he stated. “The facts are upward revisions to growth for six, eight, ten months, downward revisions to inflation and downward revisions to unemployment. For the first time in history, we will have 100 million Brazilians working before the end of this year. There are already 97 million Brazilians working in the formal and informal market. We have created more than 12 million jobs in the last three and a half years”, mentioned the minister.
Action plan
The new president of the CVM, João Pedro Barroso do Nascimento, said that he will continue the initiatives underway by the autarchy, with the appreciation of the technical staff. By 2026, when the 50th anniversary of the creation of the CVM will be celebrated, he intends to develop an action plan, the first pillar of which is based on rethinking the commission’s financing model. In the second pillar, referring to the civil servants of the CVM, Nascimento stressed the need to carry out a public tender, which has not taken place since 2010, to supply the staff of the autarchy, which faces a deficit of 30% in positions. He also intends to promote, in partnership with market agents, a program for young talents.
The third pillar refers to the evolution of computer technology, aiming to correct market failures. The first area that should go through this process of change should be the bookkeeping and custody of papers.
