The chief economist at MB Associados, Sérgio Vale, classified the measures adopted by the government to combat the debt of the Brazilian population as “palliative”. In an interview with Live CNN This Friday (10), Vale stated that the initiatives only offer temporary relief and do not solve the problem structurally.
“This is a palliative. It is to give the population a short-term breather”, declared the specialist when commenting on the . He highlighted that the political moment, with municipal elections approaching, favors the implementation of these measures: “We are in the election year. It is in the interest of Congress, it is in the interest of the government that this progresses as soon as possible for each of the political agents to say that they had a part in helping the population in a time of crisis”.
According to Vale, the program can help momentarily by enabling the replacement with cheaper debts and possible forgiveness for smaller amounts intended for the low-income population. However, he warns that beneficiaries may return, especially considering the current economic scenario of slowdown, different from that observed in 2023.
Structural solutions
The economist argued that Brazil needs to solve the debt problem in a more structural way. For Vale, there are two main paths: the continuation of the Central Bank’s work to slow down inflation, which would allow it to reduce interest rates in the future, and one.
“An important adjustment needs to be made to bring this interest rate down”, emphasized the expert, remembering that similar measures have already been adopted in the past with positive results. He highlighted that there is no way to “invent the wheel” and that the country needs to follow known paths to solve its economic problems in a sustainable way.
