Brazil Finance Minister Durigan addresses fiscal hurdles and retail stability

Brazilian Finance Minister Dario Durigan has addressed several key economic challenges facing the country. Regarding fiscal policy, Durigan identified the National Congress as a primary obstacle to achieving fiscal adjustments, noting that the government faces difficulties in approving measures to increase revenue or control spending.

Addressing the retail sector, Durigan denied that Brazil is experiencing a retail crisis. He attributed specific company struggles, such as the judicial recovery process of Casas Bahia, to high interest rates and credit restrictions rather than a systemic downturn. He noted that retail sales have generally grown in line with the GDP, though shifting consumer habits have increased online commerce.

On the international stage, the Ministry of Finance is preparing to consult with businesses regarding the potential application of Brazil's Reciprocity Law in response to US tariffs. Additionally, Durigan defended the government's energy transition agenda against political criticism, supporting the increased use of ethanol in gasoline.

Finally, the Minister addressed the financial crisis at Banco de Brasília (BRB), stating that the federal government is working on alternative models to provide financial viability and security for private banks involved in the institution's restructuring, despite not having direct responsibility for BRB's liabilities.