INSUBCONTINENT EXCLUSIVE:
The Brazilian Development Bank (BNDES), plans to pay out up to R$16 ($3) billion in dividends to the Brazilian government in 2024.Announced
Their dividend strategy mirrors actions taken in 2019 and 2021.With a mid-year net profit of R$24.6 billion ($4.6 billion), BNDES can easily
This cash injection is critical for the Lula government.It supports broad government requests for increased payouts from state-run entities,
including major banks like Caixa and Banco do Brasil.This financial maneuvering is designed to cover the expenses of new electoral
economic direction, with a pronounced emphasis on government intervention.This strategy has impacted major corporations like Petrobras and
through Central Bank autonomy questioning, labor reforms, and Eletrobras privatization.Debates on state control versus market freedom arise,
raising concerns about investor confidence and market stability.Critics warn that heightened government involvement may deter investment and
evoke past economic downturns due to increased uncertainty.
