There has been an ongoing debate about the Brazilian pension reforms bill for several years now. Two arms of the Brazilian government have been involved in the cat and mouse game, with each arm blaming the other for the failure of implementing the proposed pension’s reforms bill. The executive led by the Brazilian President presented the pensions reforms bill to the Congress but it failed to garner the required votes to pass into law. The legislature feared that passing the proposed bill would hamper their chances of winning elections scheduled for October this year. At last, the Brazilian president seems to have thrown in the towel and the dream of reforming the Brazilian pension scheme is dwindling by the day.
Many financial experts in Brazil have weighed into the matter giving their varied opinion on the proposed pension’s reforms bill. Luiz Carlos Trabuco Cappi, a revered leader in the Brazilian banking industry expressed his support for the proposed bill. Luiz has been actively involved in introducing reforms in the Brazilian banking industry.
According to Luiz Carlos Trabuco Cappi, pension’s reform is critical. The Brazilian pension scheme is one of the most generous in the world and if it goes unchecked, it will eat into the entire budget. It will not only affect the government’s expenditure, but it will also destabilize the country’s economy.
CEO Luiz Carlos Trabuco Cappi is more concerned with the effects it will cause to the Brazilian banking industry. Experts argue that if the reforms are not done, the government might be forced to use the entire Federal budget to pay the pension for their workers. It will then trickle down to other sectors, including the private sector. Banks will not be spared either.
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According to Luiz Carlos Trabuco Cappi, the reforms should be implemented now that the climate allows for amendments. If possible, the Congress can pass the proposed bill before October this year when the country goes into elections. However, considering the recent developments in Brazil, there is uncertainty, and everyone is unsure whether the reforms will be done before the elections.
Why is it necessary to pass the pension reform bill?
Passing the pension reforms bill will save the Brazilian government a bid deal. The current pension scheme has brought a huge budget deficit that is affecting the country’s development agenda. If the treasury is strained, it will then pass the burden to the public in a bid to meet the demands.
Luiz Carlos Trabuco Cappi is one of the celebrated visionary leaders in Brazil. His forward thinking abilities have helped to place Bradesco bank to where it is today. He has worked in the bank for close to five decades. Luiz rose from the position of a bank clerk to become the chairman of Bradesco.
In a recent leadership shuffle in Bradesco, Octavio de Lazari was tapped to replace Luiz as the president while Luiz stepped into the shoes of the former chairman after his resignation. Besides working in the private sector, Luiz also offers his expert opinion on various factors affecting the banking industry.
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