Day: May 1, 2020

Government links financial aid to withdrawing $ 9 bn lawsuits

The government has linked financial aid to states and municipalities during the coronavirus crisis, with legal action being requested to suspend payment of instalments of the Union’s debts. The clause consists of a project negotiated between the team of the Minister of Economy and the President of the Senate. The aid package reaches R$ 120 billion ($ 21.8 billion). Due to the government’s demand, financial assistance will only be guaranteed after withdrawal of lawsuits.

Tourism entities already speak of imminent collapse and loss of $ 2.5 bn

Tourism entities published this Thursday an open letter to the federal government, warning of the imminent collapse of the sector if immediate measures are not taken. “We have already computed R$ 14 billion ($ 2.5 billion) in losses in the tourism sector since the beginning of the crisis and 295 thousand layoffs”. The entities claim that the strike “can lead to bankruptcy not only of companies, but also of municipalities that have their activities directly linked to the sector”.

Ibovespa falls more than 3%, but jumps 10.3% in the best April in 11 years

The Ibovespa closed this Thursday (30) with a fall of more than 3%, but it did not prevent the index from closing April with gains of 10.25%, with investors positively reflecting expectations of the reopening of large economies after tough measures of social isolation due to the coronavirus pandemic and with hopes of advancing the treatment of Covid-19. Despite the strong appreciation in April, the index still accumulates losses of 30% in 2020.

Public sector accounts have a deficit of $ 4.3 bn in March

The consolidated public sector accounts, which include the federal government, states, municipalities and state-owned companies, registered a primary deficit of $ 4.3 billion in March, according to information released by the Central Bank. The deficit occurs when public sector spending exceeds revenue from taxes and contributions.