Brazilian public companies are adopting a cautious stance in the face of the current economic scenarioprioritizing cash preservation and market survival.
This is the assessment of Pablo Cesário, executive president of Brazilian Association of Public Companies (Abrasca)in an interview with CNN Money this Tuesday (21).
According to Cesário, this is a time for prudence for companies, which face challenges such as high interest rates and the risk of judicial recovery.
“The companies are all in a prudent manner, which means that those who have cash preserve it, those who do not have cash are financed via the debt market and also the sale of assets”, he explains.
The executive emphasizes that this behavior is a response to the fiscal adjustment and to interest increasewhich aim to reduce the speed of the economy.
In this context, companies are seeking to diversify their sources of financing and, in some cases, even repurchasing shares.
Cesário also addressed the issue of . Abrasca advocates a careful assessment of public policies and tax incentives.
“All incentives granted to sectors A, B, C, for all purposes, are given to achieve a public purpose, an expected result”, he says.
The president of Abrasca emphasizes the need to evaluate the efficiency of public spending and tax incentives, seeking the most effective ways to achieve objectives such as creating jobs, combating poverty and encouraging innovation.
Abrasca positions itself against any increase in taxes, including the possibility of increasing the Social Contribution on Net Profit (CSLL) and changes in the taxation of interest on equity.
“Brazilian society has given several signs that the State needs to do more and better with what it already has”, argues Cesário.
No scenario for IPOs
As for the capital market, Cesário observes that .
However, it highlights the growth of the debt market as a financing alternative for companies.
The executive also draws attention to the trend towards diversification of financing sources, including the search for IPOs abroad.
“This brings up a very important discussion about the competitiveness of our national market, since even small companies are choosing to go public, for example, in Europe or the United States”, he concludes.
