March 29, 20 - 2:56 pm - LABS

Brazil will use up to 5% of its GDP to fight coronavirus and its impacts

In a webinar held on Saturday by XP Investimentos, the Economy Minister Paulo Guedes said that the country will use up to 5% of its GDP in measures to combat the impacts of the coronavirus.

About BRL 750 billion will be injected over the next three months to help all sectors that will need it

Paulo Guedes, Brazil’s Economy Minister.
Photo: Shutterstock.

According to the minister, the number represents 4.8% to 5% of Brazil’s GDP.

The account includes the measures already taken by the Central Bank, which will allow, for example, the country’s financial institutions to lend up to BRL 200 billion.

Another BRL 150 billion will come via loans and financing lines offered by BNDES and Caixa Econômica Federal.

The anticipation of the Christmas bonus of the INSS retirees and pensioners and the postponement of tax payments by micro and small entrepreneurs add another BRL 150 billion to the package of measures.

Emergency aid for 38 million informal workers is expected to reach the amount BRL 50 billion. Guedes said that the government is going to add another BRL 50 billion to supplement the companies’ payroll. The measure is not yet ready, but it should come out in the next few days. The Central Bank also announced on Friday a credit line of BRL 40 billion to finance the payroll of small and medium-sized companies.

To complete the stimulus package, the minister mentioned the release of BRL 88 billion in resources for governors, and said that an amount of aid for mayors will also be announced soon. and said he will also do a program for the municipalities.