Brazil’s future economy minister wants state development bank BNDES to return 100 billion Reais, some US$25.7 billion, to the nation’s treasury in 2019, a newspaper reported, as the incoming government seeks to cut the nation’s hefty debt load.
The transition team of incoming Economy Minister Paulo Guedes is talking with the future head of BNDES, Joaquim Levy, about the potential payment, newspaper Estado de S. Paulo reported on Thursday, citing sources with knowledge of the matter.
BNDES has 260 billion dollars of debts with the treasury, Estado said, and it is currently scheduled to pay back 26 billion reais next year. Guedes’ plan would accelerate those repayments.
While the paper said Guedes wants a 100 billion-real payment in 2019, it added that the actual amount will depend on the assessment of the “technical area” of BNDES.
Guedes and Levy are due to take office in January.
BNDES has been used extensively to finance pork barrel projects under congressional influence and has financed generously Brazilian industry and agriculture.