President Luiz Inácio Lula da Silva (PT) said this Monday (23), during a meeting with Brazilian and Argentine businessmen, that the BNDES (National Bank for Economic and Social Development) will “once again finance trade relations in Brazil and engineering projects abroad”.
One of the goals of the PT party, on a visit to Argentina this week —the president’s first since taking office— is the strengthening of trade ties and regional integration.
Earlier, Lula had already stated that the financing of works in Latin America by the BNDES would be a “reason of pride” for Brazil, and that the country has a duty to help its neighbors.
The performance of the development bank abroad was the target of criticism from opponents in previous PT administrations, and mobilized during the electoral campaign by supporters of Jair Bolsonaro (PL).
One example is the Port of Mariel, in Cuba, whose modernization was carried out by Odebrecht with BNDES financing. Other works were financed in Venezuela and Mozambique —which even defaulted on payments in 2018.
He also said that if Brazilian businessmen show effort, the conditions for building a gas pipeline between Brazil and Argentina could be created.
“I’m sure that Brazilian businessmen are interested in the gas pipeline, in the fertilizers that Argentina has, in Argentina’s scientific and technological knowledge. And if there is interest from businessmen and the government, and we have a development bank for that, let’s create the conditions to make the financing that we can do to help in the Argentine gas pipeline”, said Lula.
In addition, the Minister of Economy, Fernando Haddad, stated that Banco do Brasil will finance exports to Argentina with the issuance of letters of credit.
The measure would be part of a new plan to try to revive trade between the two countries by financing exports. The agreement foresees the opening of credit from Brazilian banks to Argentine importers and the creation of a fund by the Brazilian government to guarantee the payment of loans.
Another topic dealt with by Lula and Haddad this Monday was the creation of a common currency for trade relations between the countries. The petista said that Brazil and Argentina are working on this plan.
The statement was given after a meeting between Lula and the Argentine president, Alberto Fernández, in Buenos Aires this Monday (23).
“I think over time it [moeda comum] it will happen, and it needs to happen”, stated Lula.
The idea is that the “sur”, as it would be called, is a common currency for commercial transactions between countries. That is, it is not a single currency – Brazil and Argentina would follow with the real and the peso, respectively.
The Brazilian president says that the common currency project will be dealt with together with proposals for foreign trade and transactions made by the economic teams of Argentina and Brazil, after “many debates and meetings”.
“If it were up to me, we would always have foreign trade in other countries’ currencies, so that we don’t have to depend on the dollar. Why not try to create a common currency between the two countries, with Brics countries?”, said Lula .
With Reuters
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