MercoPress, en Español

Montevideo, September 24th 2018 - 12:32 UTC

Ciro Gomes pledges to de-concentrate Brazil's banks, and to help 63 million listed as delinquent debtors

Thursday, September 13th 2018 - 08:36 UTC
Full article 7 comments
Gomes said 85% of Brazil's bank transactions were in hands of Banco do Brasil SA, Caixa Econômica Federal, Santander, Itaú Unibanco Holding and  Bradesco Gomes said 85% of Brazil's bank transactions were in hands of Banco do Brasil SA, Caixa Econômica Federal, Santander, Itaú Unibanco Holding and Bradesco

Center-left populist presidential candidate Ciro Gomes vowed on Wednesday to reduce concentration in Brazil's banking sector if elected in October, warning that he would open the sector up to more foreign competition if necessary.

 Gomes said 85% of the country's bank transactions were in the hands of five banks: Banco do Brasil SA, Caixa Econômica Federal, Santander, Itaú Unibanco Holding SA and Banco Bradesco SA.

By contrast, he said, the United States has “thousands” of banks competing by offering lower fees and interest rates to win more customers.

“The concentration here is criminal ... I want to do this to protect Brazil's financial system. If they don't understand, I will have to open the door to international banks and I don't want to do that,” he said before a panel of journalists.

Gomes, who has moved up to second place this week in polls of voter intentions, explained his plan to help the 63 million people listed as delinquent debtors by Brazil's SPC Credit Reporting Agency.

If the banks offered discounted credit to individuals, the government would ask the central bank to reduce their reserve requirement, he said.

”Not a cent of public money will be spent and people will have the protection of the government to refinance their debt on civilized terms, he said.

The relief plan has been music to the ears of heavily-indebted Brazilians and contributed to his improved polling, though he trails far behind front-runner, the far right candidate Jair Bolsonaro.

The polls, however, show Bolsonaro losing against most of his main adversaries in a second-round run-off.

With popular former president Lula da Silva banned from running due to a corruption conviction, Gomes could well make the run-off and beat Bolsonaro, analysts say.

Gomes, who has touted his record for fiscal discipline as two-time governor in the state of Ceará, vowed to protect Brazilian industry, and pointed out that U.S. President Donald Trump was doing just that slapping import tariffs on steel and aluminum and other imports from China.

The candidate was interviewed by reporters from O Globo and Valor Economico newspapers and Epoca news magazine.

Categories: Economy, Politics, Brazil.

Top Comments

Disclaimer & comment rules
  • Jack Bauer

    Ciro Gomes....another deluded, populist, leftist fool....spouting his lies for the ignorant to lap up...

    Sep 13th, 2018 - 10:30 pm 0
  • :o))

    REF: “Ciro Gomes pledges to de-concentrate Brazil's banks”:
    Looks like the banks refused to support his campaign!
    Funny, nobody thought of THIS:
    https://i0.wp.com/www.humorpolitico.com.br/wp-content/uploads/2018/09/Sergio-Cabral-183-anos-de-prisao.jpg?resize=580%2C316&ssl=1

    Sep 14th, 2018 - 11:13 am 0
  • DemonTree

    Hmmm, I don't think the UK banking sector has much variety either; I wonder if Americans get a better deal than we do, due to their thousands of banks? I heard you have to pay every month to keep a bank account there, but on the plus side you can get a free gun when you open one. ;)

    At least Ciro isn't planning to use public money for the debt relief, but discounted credit to presumably high risk individuals, plus lower reserve requirements, sounds risky. What if Brasil has a crisis like the US did with the subprime mortgages?

    Sep 15th, 2018 - 11:56 am 0
Read all comments

Commenting for this story is now closed.
If you have a Facebook account, become a fan and comment on our Facebook Page!