Marun: approving funds to cover default shows allied base's vitality

Jonas Pereira/Agência Senado

The approval by the National Congress of the draft bill that opens extraordinary credit to cover default by Venezuela and Mozambique to public and private banks, was a demonstration of the strong allied base the Brazilian government enjoys. This assessment was offered by the Chief Minister of the Government Secretariat Carlos Marun, this Thursday (3).

“Yesterday, we saw a demonstration of the base's vitality. Common sense prevailed, and we also saw a demonstration of the sense of responsibility held by parliamentarians, who decided to attend and vote for Brazil", said the minister. He also pointed out the efforts made by the leaderships to ensure the necessary quorum for the vote.

With the funds secured by parliamentarians, Brazil will be able to allocate R$ 1.16 billion to the Export Guarantee Fund (FGE), a sort of guarantor vis-à-vis banks, so that foreign companies may buy Brazilian products and services. As the export operation by Venezuela and Mozambique had Brazil as guarantor, this default had to be covered to protect the country's good payer reputation.

Export and credibility

For the minister, the National Congress' authorisation to secure these resources was important to protect Brazil's credibility in relation to economic agents, in the domestic and international arenas. In addition, it will help maintain the good pace of Brazilian exports. “[The approval] allowed us to meet the FGE's commitment, which will allow Brazilian exports to keep their fast-paced momentum and the country its national and international credibility", he concluded.