Brazil: after its approval in the Senate, pension reform should be promulgated

The Brazilian Senate finally approved on Wednesday a bill to fundamentally reform the pension system, which ends months of political disputes over a priority issue for the government, which aims to stabilize public finances and boost growth.

A final amendment to strengthen the protection of workers in hazardous situations will not change the total projected savings of R $ 800,000 million (US $ 197,000 million) over the next decadesaid Minister of Labor and Pensions Rogerio Marinho.

L & # 39; s history The bill is now waiting for the ratification of the president Jair Bolsonaro. Senate leader Davi Alcolumbre said the signing would likely take place on November 19, after the return of its president to Asia.

The Bovespa stock index has hit a new record just below 108,000 points, while the real is strengthened to establish at 4,0460 units per dollar, the highest level in six weeks.

Financial markets applauded the news, although it was a formality after overwhelming approval of the main text of the legal initiative on Tuesday.

The Bovespa stock index hit a new record just below 108,000 points, while the real has rallied to about 4.0460 units per dollar, the highest level in six weeks.

However, although the initiative had a happy ending, it is not expected that change the fiscal and economic direction of the country.

As Roberto Secemski, an economist at Barclays in Brazil, told Reuters, the approval of the bill "will prevent the country from falling back into recession," but the dynamics of the deficit and the debt will not improve in the short term.

However, he acknowledged that "the market will probably now be oriented towards the growth of the economy".

"We will monitor the new tax measures, which should be announced by the Minister of Economy, Paulo Guedes, next week," he said.

Reuters Agency.