O president from the BNDES, Aloizio Mercadante, is committed to supporting the fiscal adjustment that the government is preparing. He recognizes the importance of criticism from social movements about spending cuts, but believes that supporting the government is essential. The BNDES is making a great effort to help the fiscal result, paying R$ 25 billion in dividends and seeking to maintain a sustainable growth in compulsory expenditure. In this article, you'll learn more about the current situation of the BNDES and its future prospects.
- Mercadante supports the government's fiscal adjustment.
- BNDES will pay out R$ 25 billion in dividends this year.
- BNDES profit up 31.4% in 2024.
- BNDES credit portfolio reaches highest level since 2017.
- BNDES studies impacts of climate change for the future actions.
BNDES and Fiscal Adjustment: A New Perspective
The Role of the BNDES in Fiscal Adjustment
Você já parou para pensar no impacto que o Banco Nacional de Desenvolvimento Econômico e Social (BNDES) tem na economia brasileira? O presidente do BNDES, Aloizio Mercadante, emphasizes that the institution is striving to help the fiscal result of the country. This means that the bank seeks to contribute to the government's financial health, especially in times of spending cuts. To better understand the context, it is interesting to explore how the economic policy and fiscal adjustment are interrelated.
Criticism and Support for the Government
It's interesting to note that, while the social movements criticize the government's austerity measures, Mercadante sees this as part of an ongoing process. healthy debate. He believes that it is important to have voices that challenge the pressures of the financial market. However, he reaffirms his commitment to supporting fiscal adjustment which is being drawn up by ministers such as Fernando Haddad and Simone Tebet. For a broader view, it is useful to consider the rules for austerity and economic development that impact these discussions.
Mercadante declared that his position is clear: when the fiscal adjustment package is announced, he will be on the government's side. He trusts that the economic team, under the leadership of President Lula, He will make decisions that will benefit the country in the long term.
The Complexity of the PT
The Workers' Party (PT) is described by Mercadante as a party diverse and complex. He mentioned that sometimes the PT plays all the necessary roles without needing a formal opposition. This reflects the internal dynamics of the party, which can be both a strength and a challenge in times of crisis.
The BNDES' Effort for Fiscal Growth
Mercadante stressed that the BNDES is making a significant effort to contribute to the country's fiscal result. By 2024, the bank plans to pay R$ 25 billion in dividends, exceeding 125% of the previous year's profit. This level of payment, according to him, not sustainable and reflects an extraordinary effort to support the fiscal structure. To understand how this relates to the tax credits and investments, It is important to analyze the financial impacts.
Mandatory Expenses and Investments
One of the critical points Mercadante raised is the need to establish a trajectory sustainable for the growth of compulsory expenditure. When these expenses increase, they limit the space available for investment, which is crucial for economic growth. He emphasized that investment is the engine of growth and that, without it, the economy cannot generate jobs and taxes. For a more detailed overview of how to organize your personal finances, you can check out how to organize your personal finances.
BNDES Financial Results
The figures speak for themselves. The BNDES recorded a R$ net profit 19.0 billion in the first nine months of 2024, representing an increase of 31.4% compared to the same period last year. Recurring profit also saw a notable increase of 48.5%, reaching R$ 9.8 billion.
In addition, the bank's expanded portfolio grew by 11.11TP3Q, reaching R$ 550.3 billion, This is the highest level since 2017. Delinquency, which stood at 0.07% in June, fell to 0,001%. These results demonstrate the strength of the BNDES and its ability to operate effectively in a challenging environment. For an overview, the main indicators of the brazilian economy are fundamental to understanding this trajectory.
Increase in credit inquiries and approvals
Another point to highlight is the increase in credit inquiries, which rose 30%, totaling R$ 258.9 billion. Credit approvals also grew 39%, reaching R$ 137.4 billion, and disbursements increased 15%, totaling R$ 87.0 billion. These figures indicate a growing demand for credit, signaling a possible economic recovery.
Challenges in the Agricultural Sector
Mercadante mentioned a delay in planting the new crop, which affected demand for credit in the agricultural sector. However, he believes that demand is beginning to return more strongly. This phenomenon underscores the seasonality the agricultural sector and how changes in weather conditions can impact the economy.
Size of the BNDES and Monetary Policy
The director of planning and investor relations at the BNDES, Nelson Barbosa, In his speech at the BNDES press conference, he highlighted regular concerns about the size of the bank and the potential impact of its operations on monetary policy. He said that the BNDES is adjusting to return to a medium size that is neither excessive nor small.
Barbosa made a point of clarifying that comparisons with the BNDES from previous years, such as 2009 to 2015, are unfounded. The current goal is to return to the historical average of 2% of GDP in disbursements, starting from the current level of 1.1%. This will be done with transparency and responsibility, depending on demand and the bank's sources of funding.
Valuation of the Equity Portfolio
The BNDES' equity portfolio, which amounted to R$ 81.7 billion by the end of the third quarter, it had appreciated by 30% since the end of 2022. This demonstrates the bank's ability to generate value and contribute to Brazil's economic growth.
Focus on Climate Change
Mercadante revealed that the BNDES is considering creating an area dedicated to studying the impacts of the climate change. The bank is hiring a consultancy to analyze what additional measures will be needed. He pointed out that although Brazil has a body to monitor natural disasters, it lacks an agency focused on reconstruction actions after these events. To delve deeper into climate issues and their financial implications, the analysis of the financial markets is essential.
Conclusion
In short, the BNDES, under the leadership of Aloizio Mercadante, plays a crucial role in fiscal adjustment of Brazil, even in the face of a challenging scenario. With a firm commitment to pay R$ 25 billion in dividends, the bank not only demonstrates its financial strength, but also reinforces the importance of growth sustainable in spending. Criticism from social movements are recognized, but Mercadante's view is that support for the government is vital for the country's economic future.
In addition, the positive financial results, such as the increase in profit and the reduction in defaults, indicate an recovery and a growing demand for credit. The focus on climate change and the search for a balance in the size of the BNDES show a concern for long-term sustainability.
Therefore, the BNDES' trajectory reflects not just numbers, but a commitment to Brazil's economic and social development. To find out more about this topic and others related to finance, be sure to visit Learning about Finance.
Frequently asked questions
1. What did President Aloizio Mercadante say about fiscal adjustment?
Mercadante reiterated the BNDES' commitment to helping with the government's fiscal adjustment, supporting the adjustment package drawn up by the economic team.
2. How is the BNDES contributing to the fiscal result?
The BNDES will pay out R$ 25 billion in dividends, representing 125% of last year's profit, a vital effort for the fiscal situation.
3. What are the concerns about spending cuts?
Mercadante said that criticism is normal, emphasizing that the PT must support the government, even in a scenario with spending cuts.
4. What were the BNDES' financial results?
BNDES recorded a net profit of R$ 19 billion, an increase of 31.4% on the previous year. Defaults also fell to 0.001%.
5. What is being done about the impacts of climate change?
The BNDES is considering creating an area dedicated to climate change, hiring consultants to assess the actions needed to face these challenges.
