Durigan says the Casas Bahia crisis does not indicate a general problem in the economy: 'There is none'

Minister of Finance, Dario Durigan, in a conciliation hearing at the STF regarding the BRB loan Gustavo Moreno/STF In an interview with GloboNews Mais, the Minister of Finance, Dario Durigan, stated that the opposition has used the Casas Bahia crisis to say that the Brazilian economy is not doing well. Durigan said that, when considering a broader historical series, there was a reduction in the number of bankruptcies and judicial recoveries. According to him, retail appears behind other sectors in this survey. "When we compare the broader historical series, there was a decrease in bankruptcies and judicial recovery, and retail is even behind sectors such as industry." The minister also stated that retail is especially dependent on credit, both in relationships with suppliers and in sales to consumers. Therefore, according to Durigan, a high interest rate scenario has an impact on activity. "Basically, it depends on credit backwards, right?, for its suppliers, and it depends on credit forwards, for families, for consumers who buy. So, when you have a tight interest rate scenario, of course you have a decrease in activity, which is very dependent on credit." Durigan stated that there are different factors that help explain the situation, but rejected the idea that the episode was evidence of a widespread crisis. "So, there are a series of elements that explain, to a large extent, what is happening, but that do not justify it. A more scandalous political argument about a general crisis, because there is none." Government sees dialogue with opposition as 'productive' Durigan, asked by GloboNews about dialogue with other members of the government, whether opposition or not, stated that he has no difficulty talking to experts who can contribute to the debate. “Dialogue is always very productive,” he said. According to him, the expectation is to achieve a “good accommodation” in the increase in mandatory expenses. Durigan also stated that the government intends to advance measures that represent around 2% of GDP. "If it were up to us alone, we would do it faster", says Durigan about interest rates. "Everyone is facing some difficulty in relation to the interest rate. I am not Minister of Finance to serve a certain sector", said Durigan. According to him, the government's objective is to improve the well-being of the population and build an environment that responds to the different demands of society. "We are avoiding fiscal commitment for future generations", he reiterates.