National Treasury prepares package for investments
O Estado de S. Paulo
Together with the specific measures under study to prevent a stronger dollar fall, the economic team is working to accelerate the investment incentive agenda. The evaluation of Finance Minister, Guido Mantega, delivered to President Luiz Inácio Lula da Silva states the companies should take advantage of the moment, with the dollar at a lower price, to purchase the machinery and equipment required for a wide modernization in the Brazilian industrial park. The Government wants to sponsor a new package of measures to stimulate the investments and studies the possibility of eliminating, or at least reducing to six months, the time limit for the companies to use the credits from the PIS and Cofins (Social Integration Program and additional mandatory contribution to the financing of social security) in the purchase of machinery and equipment. This time, which has already been of 48 months, is now of 12 months.
The pro-investment agenda includes a new round of cuts in the financing costs of the National Development Bank (BNDES). The BNDES will receive a new loan from the National Treasury to start this investment agenda. For the team of Minister Mantega, without such modernization it is not possible to guarantee a "shock" of competitiveness to the companies, capable of preventing a currency crisis ahead, when Brazil receives even more external funds with the pre-salt, the FIFA World Cup and the 2016 Olympics. That gain in the competitiveness of the companies is necessary because the Country is importing more with the dollar costing less and faces a much stronger competition in the world after the international crisis. In addition to the fact that Brazil may lose the foreign market.
"Increasing the investment will guarantee the transition for the Real as a hard currency", said a source of the National Treasury. According to the source, the Minister and his team have held meetings with business leaders to discuss that agenda since the productive sector still fear to resume investing. "We also have the work of convincing the entrepreneurs of the importance of taking advantage of this moment", pointed out the source emphasizing that the productive sector needs to get away from the easy way of intending to be competitive only because of "the high exchange rate".