Luiz Alves

 

Lula: government should take advantage of the crisis to grow

Interest rates and spread fees are expected to be reduced in the next months

On Wednesday (18), in a meeting with the Political Council, the Minister of Finances, Guido Mantega, and the President of the Central Bank, Henrique Meirelles, reaffirmed to the parties’ leaders that the government estimates that the 2009 growth forecast will be from 2% to 3% of the Gross National Product (PIB). The government’s leader, Deputy Henrique Fontana (PT-RS), considers that that scenario is positive, since many countries forecast negative results this year.

Fontana explained that all indicators presented by Meirelles and Mantega show signs of improvement in the economic scenario in the next months. The Deputy informed that the president of Banco Central affirmed that they expect that interests and spread rates will be reduced in the next months.

Growth opportunities
The leader of the government also affirmed that the president Luiz Inácio Lula da Silva, during a meeting at the Palácio do Planalto, said that all government should take advantage of the crisis to grow.

"The president ordered us to take advantage of the crisis, to enhance the economic ranking of Brazil in the world. Different from the past, we now do not decrease salaries, but increase minimum wage. Public investments are not cut off, but their volume is increased, credit is broadened and we are optimistic regarding the future of Brazilian economy”, said Fontana.

Lula cited as examples the announced measures aiming at containing the crisis, and the R$36 billion (approximately US$ 15 billion) of the reserves, which will be used for loans to companies with international debts. The president also reminded that the increase in the pace of works related to the Growth Acceleration Program (PAC), and a housing program for families with an income of up to R$4,000 (approximately US$1,700) are among the measures aiming at encouraging the economy growth.

Voting priorities
The president affirmed that the voting priorities of Congress until April should be the tax reform and the Bill 836/03, proposed by the Deputy Bernardo Ariston (PMDB-RJ), which creates the positive credit record of consumers.

The president also called for unity by the allied Basis, especially in the case of negotiations for the voting of provisional measures. Lula wants the joint negotiation of those matters among leaderships of the Chamber and of the Senate to be maintained. The Union of the Basis, according to Lula, will be important to guarantee the governability and the safety of Brazil in that moment of crisis.

Report - Geórgia Moraes
Editing - Natalia Doederlein
Translation – Positive Idiomas Ltda