Caixa and Banco do Brasil Plan to Help Companies Affected by Coronavirus

Banks see new business opportunities with specific credit lines for those that suffer from the crisis


Due to the market crisis triggered by coronavirus and the fall in oil prices, Banco do Brasil and Caixa Econômica Federal plan to expand their credit lines for companies that are in financial difficulties.

The commercial strategy of public banks fills a space left open by the government, which appears resistant to introducing measures to help the economy. One of the reasons for this is that there is no budgetary space for packages of this nature.

Minister Paulo Guedes (Economy) has repeated that the way to contain the crisis is to deepen the proposed reforms.

Real - Marcos Santos

Behind the scenes, government technicians say that not having a short-term stimulus plan is a strategy to increase pressure on Congress for reforms, particularly administrative and tax.

But with the stock market falling and the dollar approaching R $ 5, the government began to be charged for measures that go beyond the planned reforms.

"We are ready to help, as we collaborated last year with the entire reform agenda. I think they help, but they are certainly not the only point to solve the damage of the crisis", said on Monday (9), the mayor, Rodrigo Maia (DEM-RJ).

Market analysts considered the possibility that Guedes's team could copy the example of the USA and propose tax cuts or the postponement of the payment of taxes as an alternative to companies that suffer from the high dollar.

Translated by Kiratiana Freelon

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