Banker Declines Dilma Rousseff's Invitation to Head Brazilian Ministry of Finance

11/21/2014 - 10h18

Facing Luiz Carlos Trabuco's refusal, Brazilian president Dilma Rousseff has begun analyzing three names to become part of her economics team in her second office: Joaquim Levy (former secretary at the Department of Treasury in Lula's government), Nelson Barbosa (former executive-secretary at the Ministry of Finance in Lula's government) and Alexandre Tombini, the current president of the Brazilian Central Bank.

According to Folha's investigation, names may be released between this Friday, November 21st, and Monday, November 24th, in an attempt to divert the focus from a negative agenda brought on by the Petrobras scandal.

According to the presidential press office, there is a possibility that all three names compose the economics team. Levy would be the best name to match measures in the taxation area.

Barbosa would formulate economic measures. Tombini would stay in the Central Bank with the mission of taking inflation to 4.5%, in the middle of the target.

The trio are considered experts and have been tried and tested in executive roles. This could compensate the absence of an impactful name and would be well received by the market.

Joaquim Levy's name was included in the list after the president of Bradesco bank, Luiz Carlos Trabuco, denied an invitation to head the Ministry of Finance, in a meeting with the president on Wednesday, November 19th.

Ms Rousseff had met with Lázaro Brandão, president of the Management Council of Bradesco Bank, the day before she met with Trabuco, when she was warned that the bank was adamant in keeping Trabuco in. He is under training to become Brandão's substitute in the future.

Levy currently heads an arm of Bradesco bank, and has been put forward as an alternative to Trabuco to substitute Guido Mantega. He has worked in the government - with Antonio Palocci in the Ministry of Finance - as well as at international institutions and at financial markets.

The presidential press office also spoke of the hypothesis of another change. Alexandre Tombini could go to the Ministry of Finance while Joaquim Levy could head the Central Bank.

The press office say that Levy would make a good addition to the team, but they signal difficulties in choosing him because he has had misunderstandings with president Rousseff in the past.

Nelson Barbosa is a suggestion made by former president Luis Inacio Lula da Silva who could be named to head the Ministry of Planning. However, other names put forward by Lula were not successful: Trabuco and the former president of the Central Bank, Henrique Meirelles.

Translated by CRISTIANE COSTA LIMA

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