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On the Jobs Front, Brazil Is No U.S., Says Minister

Brazilian minister Miguel Jorge "Credit for industry should not be a problem. Up to the end of the year, 90 billion Brazilian reais (US$ 36 billion) in financing should be made available," said the minister of Development, Industry and Foreign Trade, Miguel Jorge, during the 13th National Meeting of the Chemical Industry, which took place in SΓ£o Paulo.

Apart from the measures of the federal government to overcome problems and avoid the worsening of reflects of the global financial crisis, investment is necessary to strengthen and provide incentives to the export capacity of national industry.

According to the minister, the deceleration of the Brazilian economy has already started, but should continue light throughout 2009, very different from what happened in the United States, where close to 2 million people have already been dismissed this year.

"Up to now Brazil has only registered a reduction in the number of people being employed. The total dropped from 200,000 to 70,000," pointed out Jorge.

"Of the investment forecasted by vehicle factories, most should be maintained for production. At the end of the year, the auto industry, as traditionally takes place, should grant employees leave. Then, if necessary, it should reduce production on weekends, holidays and in the third shift. There are many measures to be taken before dismissals," he said.

"In the medium and long run, we have no information regarding dismissals in specific sectors, just in companies," he added.

Up to September, recalled the minister, the Brazilian industry had rates of growth of 5.9% a year. "There has been a fast halt in the auto sector, 300,000 vehicles are sitting in the carmakers plants. However, the measures adopted by the government are not restricted to the auto and building sectors, which felt the greatest impact of the crisis," he pointed out.

According to the minister, the Brazilian Development Bank (BNDES) has already approved the issuing of funds. In the month of October, for example, the BNDES card reached its best performance to date, with 110 million reais (US$ 44 million) in transactions.

In the same period, the Central Bank of Brazil also took measures to face the crisis. "In the agricultural area the government also increased the issuing of funds. A total of 500 million reais (US$ 200 million) has been made available for the Midwest to help cover the costs of machinery purchases," he added.

Miguel Jorge also mentioned the agreement recently signed between Brazil and the European Union, to benefit exports of micro and small companies. "This agreement should help reach the target of 10% growth in participation of micro and small companies in the total exported by the country."

"Surviving Brazilian businessmen are heroes. We lived and survived eight economic plans and six new currencies. The solution is to maintain the level of investment, one of the factors necessary to maintain development," he guaranteed.

Petrobras president JosΓ© SΓ©rgio Gabrielli spoke to businessmen about the part played by the company as a supplier of raw material for the chemical industry and as a shareholder in petrochemical organizations.

The presentation focused on themes like the perspectives of the petrochemical industry in Brazil and worldwide, investment and Petrobras projects, as well as the challenges and opportunities after discoveries in the pre-salt layer.

Gabrielli said that the sustained growth forecasted for the Brazilian economy, aligned to the new oil discoveries, establishes a favourable scenery in the long run for the development of the national petrochemical industry. "We plan to maintain our investment in the oil sector, both accompanied by Braskem and Quattor, of whom we are partners, and in individual projects," he guaranteed.

According to the executive, the greater competitiveness in the petrochemical sector promotes consolidation on the Brazilian market, guaranteeing several advantages for the domestic petrochemical industry, with the expansion of funding and the promotion of investment in expansion.

"One of the main projects is the expansion of the Brazilian strategy for South America with profitability and in an integrated manner with other Petrobras partners," he evaluated.

Gabrielli also spoke about the perspectives for production of oil in the pre-salt layer, which has estimated oil volumes of recoverable oil of between 5 billion and 8 billion barrels of oil equivalent (boe); in Iara block, estimated reserves are between 3 billion and 4 billion boe and in Parque das Baleias, 1.5 billion to 2 billion boe. "We may double our reserves with these three discoveries alone," he said.

According to the president of the oil company, the main challenge for production in the pre-salt layer is not the volume of investment for exploration in the region, "but the method of production, as we have a series of logistics and technological challenges," he said.

With regard to the possibility of lower fuel prices in Brazil due to lower oil prices on the global market, Gabrielli said that diesel and petrol prices do not fluctuate on the domestic market according to prices on the foreign market. "We maintain correlation between fuel in Brazil and abroad considering a long-term view," he said.

Anba

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  • Show Comments (9)

  • dnbaiacu

    It’s starting all over again….
    [quote]Not U.S.Fed. IMF offered 30B and probably we took it. The offer was made about 3 weeks ago.Such things are not made public. [/quote]

    And so fast.. What a joke!!!!! πŸ˜€ πŸ˜€ πŸ˜€ πŸ˜€ πŸ˜€ πŸ˜€

  • dnbaiacu

    Wow … Unbelievable.
    [quote]In April the Petrobras price was fixed at US$ 80.- !
    Now Brazilians pay TWICE THE FREE MARKET PRICE !!!!!
    This is what Gabrielli meant “We maintain correlation between fuel in Brazil and abroad considering a long-term view” So that
    Petrobras always remain profitable even during “LOW” FREE MARKET OIL PRICES….which translate in fact by HIGH OIL PRICES IN BRAZIL….. WHEN OIL PRICES ARE LOW IN THE FREE MARKET !
    [/quote]
    That’s a crime shame!
    Add to that , they are probably taking advantage of everyone “getting a car now”. LOLOLOL Very disturbing. πŸ˜₯
    I am so glad we have Ch.c to help us get it figured out.

  • bo

    Brazil Ain’t the U.S…..
    Boy, you couldn’t have gotten that one any better!

    And to du48, I’m sure you’re very well aware that it’s dangerous business questioning politicians in Brazil. If one does, get your passport and visa’s up-to-date beforehand. πŸ˜‰

  • du48

    Bewildered? You will be.
    While the President goes around screaming at people not to stop spending (money they haven’t got) ‘cos if they do it’ll put people out of work, WHERE is the OPPOSITION? WHERE are the JOURNALISTS who are supposed to be challenging and questioning the politicians?

    Everyday Ministers churn out figures covering new credit lines for industry and agriculture when the reality is the banks are NOT lending,period. (See Miguel Daoud – financial analyst canalrural.com.br.)

  • bo

    And Lula…
    today, at a speech he gave in Tocatins, was ranting, screaming, and hollering as loud as he could how “there are those rooting for Brazil to go broke”. And that the, “U.S. government is broke”. And how, “Brazil is prepared for this crisis better than anyone else”.

    Well then why in the hell would he accept money from the IMF?

  • João da Silva

    [quote]Brazil borrowed 30B from the U.S. Fed? Where did you see this[/quote]

    Not U.S.Fed. IMF offered 30B and probably we took it. The offer was made about 3 weeks ago.Such things are not made public. πŸ˜€

  • bo

    Ch.C
    Brazil borrowed 30B from the U.S. Fed? Where did you see this?

  • ch.c.

    Bo !
    Brazilians citizens (not the government) are actually SUBSIDZING Petrobras.
    Because the government DECIDES of the oil price.
    From 2005 to April 2008, your oil price were BELOW free market prices, which helped your inflation rate on the LOW side !
    In April the Petrobras price was fixed at US$ 80.- !
    Now Brazilians pay TWICE THE FREE MARKET PRICE !!!!!
    This is what Gabrielli meant “We maintain correlation between fuel in Brazil and abroad considering a long-term view” So that
    Petrobras always remain profitable even during “LOW” FREE MARKET OIL PRICES….which translate in fact by HIGH OIL PRICES IN BRAZIL….. WHEN OIL PRICES ARE LOW IN THE FREE MARKET !

    Is that not great in such a large country…where everything must be transported hundreds to thousands of kilometers…to move goods from one area to the other ?
    Especially knowing that in top of the large distance, there is little railways, and only 5 % of paved roads !!!!!

    Conclusion : most of your hundreds and hundreds of millions tons of goods are CHEAP & VOLUMINOUS, mostly transported by trucks, for large distances, in 95 % of unpaved roads…and at well above free market oil prices !!!!!!

    Very competitive…the Brazilian Model ! Isnt it ?

    Better yet :
    if as the article states ” “Credit for industry should not be a problem.” then why your industry entrepreneurs are saying the opposite ?
    And why is Robin the Crook criticizing the lack of foreign currency loans available….for Brazil…if enough is available locally ?
    And why borrow US$ 30 billion from the U.S. Fed if Brazil has enough foreign currencies reserves ?

    Things never add in Brazil between what they do…and what they say !!!!
    Normal…that is exactly the Brazilian Model : cheating, lying and hiding…and manipulating !

    πŸ˜€ πŸ˜‰ πŸ˜€ πŸ˜‰ πŸ˜€ πŸ˜‰ πŸ˜€ πŸ˜‰ πŸ˜€ πŸ˜‰ πŸ˜€ πŸ˜‰

  • bo

    In Other words Brazil….Pucker up!
    [quote]With regard to the possibility of lower fuel prices in Brazil due to lower oil prices on the global market, Gabrielli said that diesel and petrol prices do not fluctuate on the domestic market according to prices on the foreign market. “We maintain correlation between fuel in Brazil and abroad considering a long-term view,” he said. [/quote]

    How could Petrobras ever become an exporter? Why would they want to when they can sell their petrol at the same price in Brazil when oil on the international market is $150/barrrel or $42/barrel!!! πŸ™ πŸ™

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