June 30, 2022
After Joesley Day, there is now Waiver Day in the Brazilian market;  understand |  Finance

After Joesley Day, there is now Waiver Day in the Brazilian market; understand | Finance

Like Pandora, in Greek mythology, who unleashed all human ills by opening a chest that should have remained closed, the Minister of Economy, Paulo Geddes, opened its doors this week, destroying the little hope that once existed in the console market spending cap from the state. As a bonus, a new date has also been created in the Brazilian calendar: “waiver day“.

On Wednesday, Guedes said the government I was studying to request a license (“waiver”) to spend 30 billion Brazilian riyals outside the spending ceiling, considered major State financial anchor.

The term “waiver” is generally used in the corporate world and financial institutions to refer to a company or person’s non-compliance with a contract.

In this case, Guedes was referring to the budget cap itself, which serves to limit growth government expenditures, Lighthouse control inflationGDP and market behaviour.

Agree to agree with an opinion PEC from Precatorio In cameraYesterday, the change in the spending cap removed fiscal control of the window and further angered members of Congress over more money.

With no opportunity to implement the financial control that was the focus of his administration, there was no other alternative to the Special Minister of Treasury and Budget, Bruno FunchalAnd If he does not resign along with three other members of Team Guedes.

Funchal The market considers him the real guarantor of the state’s fiscal policy His departure resulted in a broth that was no longer valid.

Relinquishment Day marks the day the state relinquishes fiscal austerity Implemented since the Temer administration, it seals the loss of power of the economic team – and thus Guedes – in the face of an increasingly large political wing and lack of market control, with the stock market plummeting, interest rates rising, and dollars rising.