The government plans to list on the exchange the digital arm created to distribute the emergency aid, indicated the Minister of Economy, Paulo Guedes. this Tuesday (20th). The initial public offering (IPO) will be of Caixa Tem, an application of Caixa Econômica Federal for the movement of benefits, said a source with direct knowledge of the matter.
Government officials have already dealt with the transaction with the Central Bank, the source added. The idea is for Caixa Tem to become an independent subsidiary, with more products.
Last month, Caixa had already announced that it intended to expand Caixa Tem’s operations to include features such as the offer of microcredit, insurance and cards.
Emergency aid, the government’s main push to tackle 19 covid pandemic, has been paid exclusively by Caixa since April. Lasting until December, it will imply a total expenditure for the Union of R $ 321.8 billion.
Read more: Guedes says government saved 11 million jobs in pandemic
“We digitized 64 million people. How much is a bank with 64 million people worth? Low-income people, who are in bankroll for the very first time, so they will be loyal for the rest of their lives,” said Guedes at the Milken Institute Global Conference. “We are planning an IPO of this digital bank that we produced in less than six months,” added the minister.
Using the Caixa Tem application, users can move values and make purchases in stores through a virtual debit card and QR Code. It is also possible to pay water, electricity, telephone, gas and bill bills on the platform.
According to Caixa data, the Caixa Tem application reached 91.6 million digital social savings accounts opened until August 9, what the bank classified as “the largest movement for social, digital and financial inclusion in Brazil”.
In addition to the emergency aid, the application allows payment of the FGTS emergency withdrawal and the so-called BEM, a benefit within the Emergency Employment and Income Maintenance Program, which allows temporary reduction of wages and hours or the suspension of the workers’ employment contract.
Guedes said that this is a good time for investors to come to Brazil. He stressed the commitment to the spending ceiling and that the government remains engaged in its agenda of modernizing regulatory frameworks and that it will create an exchange rate hedge mechanism for long-term investors.
“If the private sector abroad wants to pay extra money to have a guarantee. We can give them for a certain price. If they want it, we will provide it,” said Guedes.
“I think we have to have a special mechanism because it is very difficult for those who come here to invest 10 years in a water station or railway program. He wants to earn a dollar plus 10%, a dollar plus 12%, a dollar plus 8%, and then in the last week there is a crazy race here for one political reason or another and then he loses money “, he added.
Guedes also said that Brazil should join the OECD (Organization for Economic Cooperation and Development) in one year, adding that the country is now meeting two thirds of the necessary requirements. The minister stressed that the Gross Domestic Product (GDP) should fall about 4% this year, against an official forecast by the Ministry of Economy of -4.7%.
Guedes also said that the government is being misunderstood about its commitment to the environment and to the indigenous people.
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