“Unless Economy Returns, People Will Die of Hunger,” Says Brazil’s Chief of Staff

RIO DE JANEIRO, BRAZIL – On Friday, May 22nd, the Chief of Staff of the Presidency, Walter Souza Braga Netto, reported in detail the federal government’s actions over the past 60 days to tackle the novel coronavirus, in testimony before the National Congress Joint Commission on Covid-19. He highlighted the R$600 (US$108) emergency aid being paid by the federal government and said that the funds are limited and that the economy must return under penalty of social chaos.

“The funds are limited. When the funds are exhausted, and there is no way to sustain them for a long time, the economy has to return and then we need your support because unless the economy comes back, we will have people dying of hunger. We will have social chaos, shortages, and everything else,” he said.

Braga Netto added that the number of applications for unemployment benefits has so far increased “only 9.6 percent”. For the Minister, this shows that the situation is still under control, although it is already high. The Chief of Staff further said that for the time being, because of government actions, the population and supply in the country is ensured, “but the government is doubling its efforts to sustain this level of employment and supply.”

Asked about the challenges that micro and small-sized businesses face in taking credit under special conditions, the Minister said that a new provisional measure (MP) to lift the obstacles for credit to reach micro and small-sized businesses is about to be issued by the government.

This MP, when added to the recently passed Law 13.999/2020, is expected to increase the effectiveness of credit that reaches micro and small-sized businesses. The sanctioned text establishes a credit line with lower interest rates for micro and small-sized companies to tackle the economic crisis caused by the pandemic.

Financing will be provided by the Bank of Brazil, Caixa Econômica Federal (Federal Savings Bank), Banco do Nordeste (Bank of the Northeast), and Banco da Amazônia (Bank of the Amazon), with resources from the Constitutional Funds of the North, Northeast, and Center-West.

Another measure that the Chief of Staff announced to legislators during the public hearing was the launching of Pró-Brasil by the federal government within 60 days. He explained that the program does not provide for the spending of public resources.”Pró-Brasil does not offer money. It is a tool to prioritize existing projects in the government focused on projects that could attract both private and individual investment”.

“I have been approached by several entrepreneurs, several national and international organizations, wanting to invest but feel insecure about the country. Pró-Brasil is a development program; it is the path to prosperity”.

Asked about the delay in the release of funds and distribution of supplies to fight the novel coronavirus by the federal government to states and municipalities, Walter Braga Netto complained about the bureaucracy. A coordinator of the Ministries Esplanade to spend and not have the CPF (Natural Persons Register) blocked or answer to the Court of Auditors and all control bodies, is required to take several measures that hinder the implementation of these resources, he said.

In addition, the general recalled that there is a race for supplies outside Brazil, and there are also challenges in getting these supplies from China, for instance. “One of the measures we intend to take during the execution of Pró-Brasil is to forward to Congress the approval of measures to facilitate these actions,” he said.

Source: Agência Brasil