The economic team wants to borrow $ 4.01 billion from international organisations to finance expenses related to the coronavirus crisis, including expansion of the Bolsa Família and payment of emergency aid, unemployment insurance and the benefit directed to those who have suspended employment contracts or reduced hours.
Caixa Econômica Federal paid R $ 65.5 billion ($ 12 billion)in emergency aid, in addition to the first and second instalments, said the bank’s president, Pedro Guimarães. In total, 55.9 million people have received some portion of the benefit since the program was created in April, to help people cope with the impacts of the covid-19 crisis.
The fall in global economic activity will make the world reach the goal of reducing gas emissions stipulated by the Paris Agreement. The estimate is that the volume of carbon discharged into the atmosphere will drop 6% globally. Brazil may go against this trend. An analysis made by the Climate Observatory points to an increase of up to 20% in Brazilian emissions, in 2020. The reason is the growth of deforestation in the country.
Demand greater than that predicted by the R$ 600 ($ 110) emergency aid raised the forecast for spending on the benefit to R$ 151.5 billion ($ 28 billion). The estimate, however, considers only the payment up to the third instalment, not taking into account a possible extension of the aid. The amount is 54.2% higher than the initial projection of R$ 98.2 billion ($ 18 billion) announced by the government.
Congress approved the supplementary credit of R$ 343.6 billion ($ 62 billion) that would allow the federal government to circumvent the so-called golden rule and issue debt to pay expenses with pensions, salaries and social benefits. Most of the R$ 213.7 billion ($ 38 billion) credit is used to pay Social Security benefits, such as retirement and pensions.
The exchange rate flow to Brazil was positive at $ 1.898 billion between May 11th and 15th, data from the Central Bank, which raised the month’s surplus to US $ 2.337 billion. Last week, the commercial account had a surplus of $ 1.943 billion
Treasury Secretary Mansueto Almeida said that the contraction of Gross Domestic Product (GDP) this year may be greater than 5%, compared to an official estimate of a 4.7% decline, and stressed that projections worldwide are being revised by account of the coronavirus pandemic.
The Brazilian trade balance registered a trade surplus of US $ 1.290 billion in the second week of May (from 11 to 17). According to data released recently by the Ministry of Economy’s Foreign Trade Secretariat, the value was reached with exports of US $ 3.818 billion and imports of US $ 2.528 billion.
B3 reported on Monday that the court had refused a request to annul a fine imposed by the IRS, in a lawsuit of about R$ 1.3 billion ($ 237 million). The case refers to the amortisation of the goodwill generated, for tax purposes, by the incorporation of Bovespa by BM&F in 2008 and 2009.
São Paulo announced the signing of a concession contract between the São Paulo State Transport Agency (Artesp) and the Eixo SP concessionaire to operate the PiPa Lot (between Piracicaba and Panorama). With the signing of the contract, Eixo SP takes the largest road network ever tendered in Brazil, with 1,273 kilometres, for a period of 30 years. The winning consortium, under the leadership of Banco Pátria, will make an investment of R$ 14 billion ($ 2.6 billion).