The president of the (National Bank for Economic and Social Development), criticized the government and stated that there was a lack of reciprocity with the federal government.
Soon after Lula’s decision to veto parts of the project, the governors (PSDB), from , and (Novo), from , used social media to criticize the vetoes and signaled an effort to overturn them in the National Congress.
To the Panel, Mercadante says it is legitimate for governors to defend their states regarding debts, but remembers that there have been several negotiations over the years, “with important impacts on public debt.”
The renegotiation sanctioned by Lula. Rio de Janeiro, Minas Gerais, São Paulo and Rio Grande do Sul hold 90% of the R$765 billion that the Union has to receive.
“President Lula instructed BNDES to build a republican relationship with the states. BNDES and Novo PAC have been working on this guideline”, he says. “However, it is very difficult to move forward in this direction when there is not the slightest reciprocity on the part of some opposition governors.”
Mercadante calls the case of Rio Grande do Sul “unbelievable” because of the support given by the federal government after the . He mentions the sending of R$25.7 billion in resources to 464 municipalities in Rio Grande do Sul. It also states that there were more than 8,500 credit operations, 5,000 guarantee operations and suspension of payments in 72 thousand contracts for one year.
In addition to these, he continues, the bank also helped entrepreneurs in the state, with emergency credit at a rate of 1% per year and a grace period of 12 months. “The BNDES helped to rebuild the economy of Rio Grande do Sul. State GDP growth data in 2024 will certainly show the effectiveness of these measures”, he states.
“Even in the face of an unprecedented, rapid and far-reaching and effective response, we never received a single message from the governor. On the contrary, the governor attacks the renegotiation of states’ debts, signals that he will coordinate with opposition parliamentarians to overturn the vetoes and states that he received the federal government’s measure with ‘extreme concern and indignation'”, criticizes Mercadante.
Regarding Minas Gerais, Mercadante cited BNDES’ R$15.5 billion portfolio, focused on structuring concession and PPP projects. He also recalls that the bank provided a server to the state government at Zema’s request, even in a context in which the institution had not held competitions for new employees for more than 12 years — it only took place last year.
Mercadante also highlights that the bank is taking over half of the Rio Doce Fund —with R$49.1 billion— and mobilizing a team to try to improve conditions in the regions affected by the virus. “Even so, faced with the renegotiation of state debts, the governor of Minas Gerais accuses the federal government of wanting ‘the states to pay the bill for their spending'”, he criticizes.
The bank president also criticizes the governor (MDB) of the Federal District. The bank announced last week the approval of R$400 million for the expansion of metro line 1, with the construction of two new stations.
“We didn’t receive a single word or a single gesture of recognition from the governor,” he says. “On the contrary, in the same week of the announcement the governor declared: ‘I want distance from ‘. It is important to remember that the previous government did not help with the expansion of even one centimeter of the Brasília metro.”
Finally, the bank president defends President Lula’s actions and says that he seeks to rebuild democratic institutions and the federative pact. “However, some leaders remain contaminated by a recent past that poisoned republican relations and continues to contaminate the fundamental relationship between the Union and the various federated entities”, he highlights.
Mercadante, however, highlights that some opposition governors have taken a stance “of respect and reciprocity within divergence, which is typical of democracy.”
“The reconstruction of Brazil involves overcoming the denial of the federative pact that the extreme right propagates and that corrodes democracy, a regime so extraordinary that it allows even those who attack it to participate in the dispute”, he adds.
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