BNDES is not subject to impacts on USA law use by the US, says Mercadante

BNDES is not being and will not be impacted by the application of the magnitsky law by the United States government, which has caused uncertainties about the Brazilian bank scenario, said the president of the funding bank, Aloizio Mercadante, on Tuesday.

“We have no account holders, we have no exposure and we have no way to have. It concerns any more institutions that have account holders that are framed,” Mercadante told journalists after an event at UFRJ, stressing that BNDES is not a retail bank that is not subject to the impacts of the law.

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In late July, the government of US President Donald Trump imposed sanctions on the Supreme Court Minister Alexandre de Moraes accusing him of authorizing arbitrary arrests before trial and suppressing freedom of expression. The minister is a rapporteur of the lawsuit in which former President Jair Bolsonaro is a defendant, accused of plotting a coup after losing the presidential election of 2022 to President Luiz Inacio Lula da Silva.

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Moraes has been sanctioned according to the magnitsky law, which allows the US to impose economic penalties against foreigners who consider having a history of corruption or human rights abuse. Sanctions determine the freezing of all Moraes assets in the United States and prohibit US citizens to do business with it.

The day before, the STF Minister Flávio Dino determined that Brazilian citizens cannot be affected in the national territory by laws and foreign decisions related to acts that have been performed in Brazil.

“They (USA) question Pix… but it’s innovation and it’s part of the competition between countries … This is a change that can’t be questioned in the commercial relationship between countries,” Mercadante said, citing another US objection point that officially motivated US tariff against Brazil.

“You cannot replace efficiency, productivity, competitiveness with impositions and sanctions,” he added.