The former president of the BC (Central Bank), Armínio Fraga, assessed that the case involving Banco Master represents just a symptom of much larger institutional problems that Brazil currently faces. In an interview with WWFraga commented on the conflict between the TCU (Federal Audit Court) and the Central Bank surrounding the case.
According to Armínio Fraga, the situation “can go very far if things are actually exposed in their entirety”. However, he acknowledged that he was unable to assess the likelihood of this happening, although he hoped for complete transparency in the process.
Broader institutional problems
For the economist, the biggest concern is related to the functioning of Brazilian institutions as a whole. “What concerns me most is a bigger thing that concerns the functioning of our institutions in general,” he said. Fraga cited important issues that are emerging in different spheres, such as , where the minister presented a proposal to create a code of ethics.
He also mentioned criticism of the STF’s monocratic decisions in highly relevant cases, which creates legal uncertainty. In , the economist pointed out problems such as lack of transparency and difficulty in defining major priorities for the country.
Risks in the Brazilian economy
Armínio Fraga made a strong warning about Brazil’s economic situation. Despite recognizing three years of reasonable growth, he classified the fiscal situation as “totally unsustainable”, criticizing the current government’s lack of significant progress in this area.
“The country is with, with a . This is a symptom of a patient who, if he is not in the ICU, is at risk of entering,” warned Fraga, using a medical metaphor to illustrate the seriousness of the Brazilian economic situation.
The former BC president also expressed concern about entering an election year, a period in which, according to him, “the most complex and relevant issues are often canceled or the subject of populist debates.” Upon concluding his analysis, Fraga reinforced that the case of , although serious, is just a symptom of much larger structural problems that Brazil needs to face.
