Brazilian Federation of Banks Reacts to Guedes and The Worsening Economic Scenario

Manifesto on harmony among the Powers, suspended for the time being, exposes friction between banks and minister

Brasília

The decision of FEBRABAN, the entity representing the country's largest banks, to break the silence in the episode involving a critical memo in defense of "harmonization among the Powers" highlights the dissatisfaction of most of its members with the administration of Minister Paulo Guedes and the worsening of the economic scenario.

Without unanimity, the memo's text was approved with references to the economy. This displeased Caixa and Banco do Brasil, federal institutions that threatened to leave the group. FEBRABAN then started to work on a version of the memo coordinated by the president of FIESP, Paulo Skaf.

The publication of the manifesto conceived by FIESP, signed by more than 200 entities, was suspended. Versions circulating in recent days do not mention representatives of the three Powers, but express concern about the escalation of tensions, an apparent allusion to Jair Bolsonaro's bellicose behavior.

The case exposes the deterioration of the relationship between Guedes and FEBRABAN and also the growing hesitation of the business community with the government, still without a consensus on how to react. Signatories of the manifesto declared themselves surprised and disappointed with the postponement of publication.

Translated by Kiratiana Freelon

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