Brazil may reach hyperinflation if the debt does not advance satisfactorily

Economy Minister Paulo Guedes said on Tuesday the 10th that Brazil could “go into hyperinflation very quickly” if the debt is not successfully refinanced.

At the event “Good practices and challenges for the implementation of the federal government’s privatization policy,” organized by the Federal Secretariat for Internal Affairs (CGU), Guedes said he was frustrated because he had not yet succeeded in privatizing any state company, such as promised in President Jair’s campaign. Bolsonaro and defended divestments to reduce public debt.

“I am very frustrated by the fact that we have been here for two years and have not yet managed to sell any state companies. So a secretary of ours left Salim Mattar, who left the ministry in August. Another Diogo Mac Cord entered who only has to score to win; the other got zero, “he said.

The minister said that political agreements in the Chamber of Deputies and the Senate prevented privatizations. “We need to rebuild our political axis to carry out the privatizations promised in the campaign,” he added.

Without being able to carry out divestments or sale of public property, Guedes stressed that the country carries inefficient companies and goods, while it has a debt that grows like a “snowball”. “If we had killed the debt, we would have resources destined to transfer income,” he added.

At the event, the Minister of Infrastructure, Tarcísio Freitas, stressed that it is necessary to have good projects and notices, prepared with transparency and guaranteeing legal certainty. “We can only sell what the market wants to buy. The market will participate if it perceives that there is transparency in the development of projects ”, he added.

Mission

In his speech at the meeting, which was also attended by the president of the National Bank for Economic and Social Development (BNDES), Gustavo Montezano, and the secretary of privatizations of the Ministry of Economy, Diogo Mac Cord, Guedes said that the two have the mission to accelerate the privatization program.

“It has to start with Cedae, it is an asset that could have already been privatized,” he said, referring to the Rio de Janeiro sanitation company, which is in the federal government’s fiscal recovery program.

Without quoting directly, Guedes also commented on the elections in the United States, saying that democracies are “in a trance.” “One candidate questions if he was elected, another says he has a fraud. The concern of the West is that it is not holding up the competition from the East, ”he added.