1. Lula nominates Gabriel Galípolo for Central Bank President

On Wednesday (28), President Luiz Inácio Lula da Silva nominated Gabriel Galípolo for president of the Central Bank, replacing current president Roberto Campos Neto, who was appointed by former president Jair Bolsonaro.

Galípolo is an economist with a master’s degree in Economics from the Pontifical Catholic University of São Paulo and is currently the Director of Monetary Policy at the Central Bank. His appointment will now be analyzed by the Senate, which is expected to conduct a hearing later this semester. If his nomination is approved, his term will begin in 2025 and end in 2028.

His nomination comes at a time of considerable pressure from Lula on the current Central Bank administration to lower interest rates to stimulate economic growth. However, Galípolo is seen in the financial market as someone who could restrain the government in this regard.

G1: Lula indica Gabriel Galípolo para a Presidência do Banco Central
CNN Brasil: Quem é Gabriel Galípolo, indicado do governo para presidência do Banco Central

2. Chamber of Deputies approves billion-dollar loan for Airlines

On Wednesday (28), the Chamber of Deputies approved a bill that updates the General Tourism Law and allows airline companies to access resources from the National Civil Aviation Fund (FNAC) through loans.

The Ministry of Ports and Airports estimates that the fund could provide approximately R$ 5 billion in financing to strengthen operations of airline companies in Brazil.

The approval of the bill comes amid a series of challenges imposed on the sector by the pandemic, which saw the average ticket price increase by 48% above inflation.

The bill will now be submitted to the Senate.

G1: Câmara aprova projeto que autoriza fundo de aviação a emprestar R$ 5 bilhões para companhias aéreas
Câmara dos Deputados: Câmara aprova mudanças na Política Nacional do Turismo

3. Government considers taxing Big Techs

During a press conference on Wednesday (28) to discuss the government’s overall spending review, the Executive Secretary of the Ministry of Finance, Dario Durigan, stated that the Executive branch intends to send a bill to Congress proposing the taxation of big tech companies.

Durigan did not clarify how the taxation would be implemented but reaffirmed the Brazilian government’s interest in the matter, which is currently one of the key recommendations of the Organization for Economic Cooperation and Development (OECD).

Folha de S. Paulo: Fazenda planeja enviar ainda neste semestre proposta para taxar big techs
G1: Taxação de ‘big techs’: governo vê ‘maturidade’ no debate, mas não conta com arrecadação para 2025, diz secretário
Agência Brasil: Governo pretende propor taxação das big techs neste semestre

4. Credit stock rises for the 6th consecutive month,
says the Central Bank

A report from the Central Bank states that the credit stock increased for the sixth consecutive month. Over twelve months, the increase is 10.62%.

The total balance of free credit, available in the private market and with higher rates, decreased by 0.1% in July, amounting to R$ 3.516 trillion. Meanwhile, directed credit, which is subsidized and usually comes with lower rates, rose by 0.6% to R$ 2.530 trillion.

Valor Econômico: BC: Estoque de crédito do sistema financeiro sobe 0,2% em julho, para R$ 6,045 trilhões
Poder360: Estoque de crédito sobe pelo 6º mês seguido, diz BC

5. To meet fiscal goal, government announces comprehensive review of social benefits

The Ministry of Planning and Budget has announced a comprehensive review of the social benefits registration system. The goal is to achieve savings of approximately R$ 6.4 billion.

The reviews conducted by the economic team are in line with the forecasted budget cuts for 2025 to meet the fiscal surplus target. In addition to reviewing social benefits, the government plans to review the granting of pensions.

Poder360: Governo estima encerrar quase 482 mil cadastros do BPC em 2025