Meirelles says pensions reform “not dead and buried”, but was “credit negative” for agencies

Thursday, February 22nd 2018 - 09:27 UTC

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Meirelles said taxes will have to be raised in the future if the costly social security system is not overhauled.

Moody’s Investors Service said the government’s decision to drop its efforts to seek approval of the pension reform proposal in Congress was credit negative.

Finance Minister Henrique Meirelles said on Wednesday that he is focused on Brazil’s economic recovery and not thinking at this time of running for president in the October election, though he might consider a bid in April.

In an interview with Radio Bandeirantes, Meirelles said pension reform was not “dead and buried” but would not be taken up in Congress during the federal intervention in Rio de Janeiro state which has been authorized through 2018.

Meirelles also said taxes will have to be raised in the future if the costly social security system is not overhauled.

Meanwhile Moody’s Investors Service said the Brazilian government’s decision to drop its efforts to seek approval of the pension reform proposal in Congress was credit negative.

“While we already expected that a major pension reform was unlikely, ditching off the plans to pursue its approval is a credit negative development that will severely restrict the authorities’ ability to comply with the government spending ceiling in the coming years,” the credit rating agency said on Tuesday in a note to clients.

Categories: Politics, Brazil.

Tags: Brazil, Brazil Pension reform, Brazilean Congress, Brazilean Senate, Henrique Meirelles, Moody’s Investors Service, pensions reform.

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Jack Bauer
Trying to do what HAS to be done, in THIS country, is like flogging a dead horse....If the reform is not passed in 2018, the next president will have to deal with this year's projected deficit of R$ 300 billion, and an even bigger one in 2019....and we have the radical leftwing parties (PT, PC do B, PSOL), the communist unions (CUT, CGT), Lula's ragtag 'red' army (MST, MTST) to thank for it....wait and see, these exact same idiots, in 2019, will accuse Temer of not doing what he should have done, when the poor stop getting their retirement cheques.....typical of the lefties.. they believe in “the worse the situation”, the better for them .
Feb 22nd, 2018 - 05:46 pm 0
:o))
If at all they really are serious, ALL they have to do; is to ENSURE that the 2'000 or so crooks return the public wealth which they have generously been stealing for more than 20 or so years. It'll be so much more - in trillions - that the R$ 300B will look like a small change! But luckily for “them”, ALL are very LEGALLY innocent!
Feb 25th, 2018 - 12:37 pm 0

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