Haddad criticizes 8% real interest and says that public debt reflects past decisions
Finance Minister Fernando Haddad classified as a “anomaly” the current level of real interest rates in Brazil, projected at about 8.8% per year. The statement was made on Tuesday (8), during participation in Brazil Investment Forum, event promoted by Bradesco BBI.
“It is not very reasonable the real interest that pays to roll the debt,” he said. According to him, the high level compromises the fiscal effort and wages the growth of the economy. “The debt is a consequence of decisions that were made in the past, not by us,” he said, commenting on the impact of debt service on the outcome of public accounts.
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In the 12 months closed in February, the nominal deficit of the public sector – which includes interest payment – reached R $ 939.8 billion, which represents a slight drop from the recent peak of R $ 952 billion, registered at the end of 2023. Most of the breach stems from R $ 924 billion paid in debt interest, up 1.4% compared to January.
I want my wallet
Commitment to fiscal goal and growth
Haddad reinforced the commitment of the economic team to meet the goal of zeroing the primary deficit in 2025, even with the tolerance margin of 0.25% of GDP. For 2026, the goal is to reach surplus of 0.25% of GDP, also with a margin of 0.25 percentage point. “We are taking all steps to fulfill the goal,” he said.
Despite the accumulated inflation in 12 months by February, it reached 5.06% – above the 4.5% target ceiling – Haddad stated that the Central Bank “is playing its role” and reiterated the importance of fiscal and monetary policies in tune to unlock growth.
“Appetite to invest”
The minister also defended the need for more private investment to stimulate Gross Domestic Product (GDP), and said he believed that there is capital appetite for projects in Brazil. The farm forecast for GDP growth in 2025 is 2.5%.
Finally, Haddad reported that the 2026 Budgetary Guidelines Law (LDO) will be sent to Congress on April 15, within the legal deadline. The document will bring the premises for next year’s budget and tax signs for the last months of the Lula administration.
