Financial sector leaders advocate measurement and warned the risks of increased public debt during Forum Brazil 2025
Representatives of Febraban (Brazilian Federation of Banks), BTG Pactual and Itaú stated, on Saturday (7.Jun.2025), that Brazil needs a fiscal adjustment “urgent”.
Febraban President Isaac Sidney, the leader of the BTG Pactual Administrative Council, André Esteves, and CEO of Itaú, Milton Maluhy Filho, made a choir to the speech that, without sustainability of public accounts, Brazil will walk to a scenario “unbearable”.
The statements were made at the Sphere Forum, seminar made by Guarujá (SP).
Febraban
FEBRABAN ISAAC SIDNEY stated that the current “fiscal imbalance ” It can become unsustainable without coordinated action between the three powers and society. He said the measure needs to be taken “nolens volens”.
“I have the following vision: if not well, it will have to be badly […] If we cannot understand this for good, this account will be absolutely inadministrable and unbearable ”he declared.
BTG Pactual
André Esteves, from BTG Pactual, also said that Brazil needs a measure that adjusts the public accounts.
“Coming here, from the entrance of the hotel to the salon, I found 2 governors, and they told me about the need to adjust public accounts. They are from different parties, different political positions, different geographies […] Everyone is distressed with that ”, these.
The executive stated that the recovery of Brazilian assets in 2025 is related to both domestic factors and instability in other economies, such as the United States.
Itaú
Milton Maluhy Filho, CEO of Itaú Unibanco, also defended the adoption of measures to contain the advance of public debt, stating that it can grow up to 3 percentage points of GDP per year.
For the executive, the current tax framework has slow expenses containment mechanisms, which limits the effectiveness of debt control.
“You need to have the courage to face this adjustment, you need to get the mousse out of the budget. It is essential to happen, and we need to discuss structuring measures that lead the country to a schedule of much more productivity, growth and naturally debt stability and indebtedness,” stated.
Maluhy said his meeting with the Minister of Finance, on Friday (6.jun.2025) to take “Ideas, proposals and alternatives” to the government’s decision to increase the IOF tax rate (imposed on financial operations).
Watch the event (3h40min):
Read more:
