Brazil’s Finance Ministry has finalized proposal for new fiscal framework, says Haddad

BRASILIA, March 6 (Reuters) – Brazilian Finance Minister Fernando Haddad stated on Monday that his ministry has finalized its contribution to the design of the nation’s new fiscal framework, however highlighted that different ministries will nonetheless consider it earlier than the president.

“We now have finalized the design of the fiscal framework internally and now I’ll talk about it with the financial crew earlier than presenting it to President Luiz Inacio Lula da Silva, as a result of it can’t be a Finance Ministry proposal,” Haddad advised journalists on the ministry.

“It is going to be a proposal from the society, as a result of it’ll contain a complementary invoice to be accepted by Congress,” he added.

Haddad additionally acknowledged that Lula has commissioned the event of a system behind the so-called Desenrola program, aimed toward refinancing shopper debt with authorities ensures. This system shall be launched when there may be an estimate of when the system shall be prepared.

In line with Haddad, this system’s assure fund can have about 10 billion reais ($1.9 billion), an quantity that shall be enough to renegotiate 50 billion reais in debt from 37 million people.

This system is not going to have an revenue restrict, however solely those that earn as much as two minimal wages can have their renegotiation assured by authorities funds, permitting them to obtain higher reductions, stated the minister.

He additionally acknowledged that he has been sending solutions to Lula for 2 director positions within the central financial institution. The president will dedicate March to analyzing the resumes, stated Haddad.

Each the phrases of Bruno Serra, director of Financial Coverage, and Paulo Souza, director of Supervision, expired in February. Nonetheless, they’ll stay in workplace till changed.

($1 = 5.1538 reais)

Reporting by Victor Borges
Enhancing by Alistair Bell

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