Guedes criticizes the IMF and says he signed a waiver from the Fund’s mission in Brazil

Economy Minister Paulo Guedes said this Wednesday (15th) at an event to businessmen at Fiesp (Federation of Industries of the State of São Paulo) that he dispenses with the IMF (International Monetary Fund) observatory in Brazil, rebutting economic criticism made by Ilan Goldfajn, former president of BC (Central Bank), who will assume a management position at the fund.

“Apparently, the former president of the Central Bank was very critical of Brazil and he is going there. He is a good economist, a good friend, but if he already has an apparently very critical and very negative point of view about Brazil, he still needs a representative here?” asked Guedes.

Ilan Goldfajn, who is chairman of the Credit Suisse board, said in an interview with Neofeed this week that foreign investors are not fleeing Brazil, they “have already fled”.

According to Guedes, the Ministry of Economy had already signed the closing of the IMF’s official residence in Brazil before Ilan was appointed director. He added that the fund can keep the office if it wants to, but that the “government is officially saying it doesn’t need to have them here.”

“They camped here for years and forgot to leave,” Guedes said. “They like feijoada, football and apply the wrong pressure.”

According to him, the fund’s mission was installed in Brazil in a different scenario, when there was no budgetary control. For Guedes, today the situation is one of a competitive regime and a very strong fiscal support program.

The minister also stated that the IMF group made a wrong prediction about the drop in GDP in 2020, when it said it would be 9%.

Guedes participated in the Fiesp meeting with 16 other members of the federal government, including President Jair Bolsonaro and ministers such as Fábio Faria (Communications), Walter Braga Neto (Defense), Tereza Cristina (Agriculture), Marcelo Queiroga (Health), Luiz Eduardo Ramos (Secretary of Government) and General Augusto Heleno (GSI).

The event was one of the last acts of Paulo Skaf’s management, who ends his term at Fiesp on December 31st. Skaf is considering trying to run for the Senate in the 2022 elections.

Tarcísio de Freitas, Minister of Infrastructure, was cited several times as a government candidate for the State of São Paulo. Applauded by a crowded auditorium, he was called a hero by Guedes and praised by Bolsonaro, the latter with a standing ovation.

“Brazil faced the Argentine crisis, endured the Brumadinho disaster, faced the Covid crisis, faced the water crisis. We are coming out on the other side and taking Brazil to growth,” he said.

“I vote for him,” amended Guedes.

During the conversation between the two ministers, mediated by businessman Bruno Serapião, from the Pátria fund (one of the 5G investors), those present highlighted that the facts are different from the journalistic headlines, stating that Brazil arouses the interest of investors and that everything that has been auctioned in the country is purchased.

Freitas made a retrospective of his actions in front of the ministry, such as private authorizations for railways, the cabotage framework, approved on Wednesday in the Chamber, airport auctions and road concessions.

“In a short time, Brazil will have half of the federal road network granted,” he said.

Minister says it’s not time to increase servers

The Economy Minister stated that the time is not to raise salaries for civil servants. Bolsonaro has promised a raise to police officers that should cost about R$2.8 billion next year, when he plans to run for re-election.

Spending on the project to restructure the careers of the Federal Police, Federal Highway Police and the National Penitentiary Department (Depen) was calculated by the Ministry of Justice. The expense until 2024 is estimated at R$ 11 billion.

“We are in the middle of the electoral season. It is not a year to give a salary increase, but this is different from what is being talked about, which is a career restructuring, an administrative reform, a debate, a certain sector, it is different”, he said, referring to the promise made to the police.

Guedes pointed out that next year will be difficult due to inflation, “which is worldwide”, but that Brazil has already managed to regain focus after the wear and tear of fighting Covid.

“We leave battles in the way, like administrative reform, because of Covid, tax reform, the whole world taxes the super rich.”

In his speech, Bolsonaro pressured the STF (Supreme Federal Court) twice. He said he is awaiting a decision that could regulate a nominal value for ICMS across the country, which would give less power to the states to determine the price of fuels, and that it will enable a time frame, which deals with the marking of indigenous lands. “If we lose at Supreme, I’ll have to make another decision,” he said.