"Public bank presidents will correct credit market," says Guedes

On Monday, the presidents of public banks will begin their mission of reducing distortions in the Brazilian credit market and balancing the interest rates charged by financial institutions. The statement came from the Minister of Economy, Paulo Guedes, who participated in their inauguration ceremony in the Planalto Palace.

According to Guedes, interventions made by past governments in public banks have contributed to making credit cheaper for large companies and more expensive for the rest of the population, an imbalance which should be corrected by the new management.

"Economic dirigisme, I have been saying, has corrupted Brazilian politics and halted economic growth. The credit market, also nationalized, suffered interventions that were harmful to the country,” he said. "There is cheap money that is being distorted on one side and very expensive money on the other side... that kind of distortion is what this team will address," he summarized.

Guedes inaugurated presidents Rubem Novaes (Banco do Brasil), Joaquim Levy (BNDES, the National Development Bank) and Pedro Guimarães (Caixa Econômica Federal) in a ceremony at the Planalto Palace.

The Minister of Economy also highlighted the ability of these banks to turn the economy towards good management of resources and the importance of social programs funded by these institutions.