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Biggest Lender in Brazil Puts Distressed Real Estate Up for Sale

20.03.2019

Pedro Guimaraes had no time to revel in Brazil’s wild Carnival celebrations this year. Instead, Caixa Economica Federal’s newly minted chief executive officer spent the holiday week — including his birthday — courting investors at more than 70 meetings in Boston and New York. The 48-year-old head of Brazil’s biggest state-owned bank is pitching an […]

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Pedro Guimaraes had no time to revel in Brazil’s wild Carnival celebrations this year.

Instead, Caixa Economica Federal’s newly minted chief executive officer spent the holiday week — including his birthday — courting investors at more than 70 meetings in Boston and New York. The 48-year-old head of Brazil’s biggest state-owned bank is pitching an overhaul for the company that includes selling distressed real estate and stakes in subsidiaries. The moves would generate revenue to pay back perpetual bonds from the government totaling as much as 40 billion reais ($11 billion).

It’s a lot to tackle. With 1.3 trillion reais in assets, Caixa is a behemoth that’s suffered from low returns in recent years as well as controversies that include accusations of taking bribes in exchange for loans. The bank has no publicly traded shares and a reputation for being something of a black box for investors.

Guimaraes, a finance-industry veteran who’s never had a public-sector job before, is trying to lift the veil. In a wide-ranging interview, he said he’s working to improve accounting practices and balance-sheet transparency. To avoid political influences, the CEO hired Russell Reynolds Associates to help hire executives and board members with market experience. The company has already replaced 90 percent of its highest-ranking officers.

“Our priority is to brutally shrink expenses and make some strategic moves, even before we move on to doing IPOs of our subsidiaries,” said Guimaraes, who took over as CEO on Jan. 7. He plans dual listings in Brazil and New York to sell minority stakes in its insurance and card units this year. The asset-management and lottery subsidiaries will go public in 2020, he said. The four sales could yield 15 billion reais.

During Carnival, the executive approached distressed real estate investors about Caixa’s seized-assets portfolio, which is comprised mostly of defaulted mortgages and totaled almost 8 billion reais as of September, the most among Brazilian banks.

Petrobras Stake

Caixa has already lined up several assets it wants to sell, including an almost 9 billion-real stake in oil producer Petrobras, which Guimaraes is hoping to shed before the middle of the year.

Other plans include a cost-cutting effort aimed at saving 3 billion reais in two years, and auctioning the right to use the bank’s network of 26,000 branches and outlets — the biggest in the nation — to sell insurance and card-processing products that generate fees for Caixa.

The plans to save capital to pay back the government will also affect the bank’s 694 billion-real loan book, which Guimaraes intends to reduce mostly by cutting credit to big companies. The portfolio surged almost 10-fold over the past decade amid a push by previous governments to offer cheaper credit through state-owned banks. To support that effort, the Treasury loaned the bank 40 billion reais through perpetual debt instruments that are being used as capital.

“Every cent of extraordinary gains we have in coming years will be used to repay that debt,” he said.

To spearhead the asset sales, Guimaraes brought in former UBS Group AG investment-banking executive Andre Laloni as chief financial officer. Since his arrival, a fund managed by Caixa sold its 2.5 billion-real stake in IRB Brasil Resseguros SA, Latin America’s biggest reinsurer. The deal, the new government’s first privatization, gave Caixa a gain of more than 800 percent from when it bought the shares in 2015.

“We’ve been at Caixa for less than 90 days, but the amount of things we’ve already done is enormous,” Laloni said.

Low-Income Customers

The bank has more than 100 million clients, most of them low-income, who rely on its network to get social benefits, and manages cash disbursements for several infrastructure projects around Brazil.

“Caixa has a creditor relationship with clients, but that’s it — they don’t buy anything else,” he said, adding that only about 15 million clients use other products. More cross-selling may bring in an additional 2 billion reais in revenue annually. The strategy is also helping the bank score investment-banking deals — something it had never done before.

Among the non-distressed real estate deals are possible sales of all or part of the seven buildings it owns on Paulista Avenue in Sao Paulo and 15 in Brasilia, where its headquarters are located. Guimaraes is renegotiating contracts with suppliers and plans to move the bank’s Rio de Janeiro offices to a building where it’s a creditor.

Overseeing all the elements of Caixa’s turnaround effort means sacrificing family time.

“My birthday was during Carnival time, I was working in the U.S., away from my children,” Guimaraes said, adding that his kids had to travel to Amapa state in the north of Brazil to see him one weekend. But visiting far-flung regions has been an invaluable part of his new job, he said. “We are identifying real problems, gaining efficiency and selling more services and products.”

Source: Bloomberg

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Consumer, retail stocks seen as next rally of Ibovespa

19.03.2019

Brazilian market bellwether Ibovespa breached the symbolically significant 100,000-point level after a month of fluctuations. Domestic investors, especially institutional ones, are still optimistic about the proposed reforms and have pushed shares in commodities and raw-material producers to lead the gains. While warning that sustaining the rally from now on will become increasingly tricky only based […]

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Brazilian market bellwether Ibovespa breached the symbolically significant 100,000-point level after a month of fluctuations. Domestic investors, especially institutional ones, are still optimistic about the proposed reforms and have pushed shares in commodities and raw-material producers to lead the gains. While warning that sustaining the rally from now on will become increasingly tricky only based on foreign appetite for risk, analysts say there are great chances of Ibovespa reaching as high as 120,000 even amid today’s growing wave of downgrades of GDP growth forecasts, as long as most reforms go through. Stocks linked to consumer spending, like retailers, would benefit the most from another rally, they say.

Source: Valor International

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Brazil Stocks Hit New All-Time High

18.03.2019

Brazil’s equity benchmark Ibovespa index reached a new all-time high on the back of expectations that an overhaul in the country’s social security system will be approved by Congress. The index rose to 100,000 for the first time on Monday, pushing gains this year to 14 percent. “It’s difficult to see another story as positive […]

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Brazil’s equity benchmark Ibovespa index reached a new all-time high on the back of expectations that an overhaul in the country’s social security system will be approved by Congress.

The index rose to 100,000 for the first time on Monday, pushing gains this year to 14 percent.

“It’s difficult to see another story as positive as Brazil’s in the region,” said Emy Shayo, JPMorgan Chase & Co.’s head of Latin America equity strategy. The bank sees a “virtuous cycle” amid tighter fiscal policy and easing monetary policy, a combination that “attracts external capital and helps companies to recover a lot of what they lost in terms of profits,” according to Shayo.

A lot of investor optimism with Brazil hinges on President Jair Bolsonaro’s market-friendly agenda, which includes the privatization of inefficient state-owned companies, fiscal reforms and other measures to shore up Latin America’s largest economy. Since Congress resumed activities in February, investors have been closely monitoring how the newcomer president will gather support from legislators to push through the controversial pension bill. Previous administrations failed to approve the proposal, which is seen as key in order to tackle the country’s budget deficit and ensure the sustainability of the economic recovery.

“The pension bill should be approved by the lower house in June,” said David Beker, Bank of America Merrill Lynch’s Latin America equity strategist. Beker sees the Ibovespa ending 2019 at 120,000 on the back of growing profits and expectations of a better fiscal outlook.

Despite the fresh records, foreign investors remain skeptical about the stock rally, which has been largely fueled by locals. Foreigners pulled 597 million reais ($157 million) out of Brazil stocks this year as of Mar. 14, according to exchange data compiled by Bloomberg, after the biggest yearly outflow since the global financial crisis last year.

Source: Bloomberg

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Zurich, Aena Bid High to Win Brazil Airport Auction

15.03.2019

Flughafen Zurich AG and Aena SME won concessions to operate airports in Brazil in an auction Friday. The tender was seen as a test of investors’ appetite toward President Jair Bolsonaro’s market-friendly agenda that includes a massive privatization plan. Bids for the three regional blocks came in well above the initial ask, and the government […]

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Flughafen Zurich AG and Aena SME won concessions to operate airports in Brazil in an auction Friday. The tender was seen as a test of investors’ appetite toward President Jair Bolsonaro’s market-friendly agenda that includes a massive privatization plan.

Bids for the three regional blocks came in well above the initial ask, and the government will collect fees of some 2.4 billion reais ($630 million), about 10 times the minimum initial fee of 219 million reais. Infrastructure Minister Tarcisio Gomes de Freitas called the auction “a show of trust in Brazil,” adding that the auction was just one of the government’s initiatives to stimulate the sector.

Swiss firm Flughafen Zurich won the auction of the block of airports in the Southeastern region for 437 million reais, while Spain’s Aena won the bidding for the Northeast block, with a 1.9 billion-real offer. Local companies Socicam Terminais Rodoviarios e Representacoes Ltda and Sinart Sociedade Nacional de Apoio Rodoviario e Turistico Ltda formed a consortium that won the rights to operate airports in the Center-West for 40 million reais.

All the winners said they are interested in the next concession rounds, which are expected for 2020 and 2021. Freitas said the rules for the next auction will be published Monday.

Key Points

> The government sold 30-year concessions for 12 airports, divided in three blocks:
1. Northeast, with airports in Recife, Maceio, Joao Pessoa, Aracaju, Juazeiro do Norte and Campina Grande.
2. Center-West, with airports in Cuiaba, Sinop, Rondonopolis and Alta Floresta
3. Southeast, with airports in Vitoria and Macae.

> The block of airports in the Northeast had six initial bidders, the one in the Center-West had two and the Southeast block got four.

> During the live auction, the Northeast airports were the ones that attracted the most interest.

> International operators Vinci SA and Fraport AG Frankfurt Airport Services Worldwide, which won concessions to operate Brazilian airports in a 2017 auction, were also among bidders. Brazilian toll road operator CCR SA, which already operates airports in Belo Horizonte, in the state of Minas Gerais, as well as in Ecuador and Central America, also bid.

> Besides the initial payment for the concession, the airport operators are committed to investing 1.48 billion reais each during the next five years, and paying a percentage of their gross revenue starting on the sixth year.

Source: Bloomberg

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Samsung reports 15% sales growth in Brazil

13.03.2019

Despite all political uncertainties and wobbling economy of 2018, Samsung still saw sales growing over 15% in Brazil to R$23.2 billion – back in 2010 sales only amounted to R$6.6 billion. Valor Data compiled the information based on the company’s global earnings. More significant sales of high-end smartphone and TV models in a World Cup […]

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Despite all political uncertainties and wobbling economy of 2018, Samsung still saw sales growing over 15% in Brazil to R$23.2 billion – back in 2010 sales only amounted to R$6.6 billion. Valor Data compiled the information based on the company’s global earnings. More significant sales of high-end smartphone and TV models in a World Cup year gave a boost to the Korean company’s Brazilian earnings. Samsung declined to comment.

Source: Valor International

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Brazil to sign accord with U.S. on space technology next week

11.03.2019

The United States and Brazil have negotiated an accord to safeguard U.S. space technology the South American nation hopes will be used in commercial rockets lifting off from its launch site near the equator, the Brazilian government said on Monday. The agreement is being wrapped up in time to be signed next week during a […]

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The United States and Brazil have negotiated an accord to safeguard U.S. space technology the South American nation hopes will be used in commercial rockets lifting off from its launch site near the equator, the Brazilian government said on Monday.

The agreement is being wrapped up in time to be signed next week during a visit to Washington by President Jair Bolsonaro.

“Negotiations are being concluded with a view to signing an agreement during the presidential visit to Washington,” a foreign ministry official said.

Brazil hopes to get a piece of the $300 billion-a-year space launch business by drawing U.S. companies interested in launching small satellites at a lower cost from the Alcantara base run by the Brazilian Air Force on the South American country’s north coast.

Because of its location close to the equator, launches burn 30 percent less fuel and rockets can carry larger payloads, though Brazil is aiming for the cost microsatellite niche market that is growing fast, Air Force officers said.

Space cooperation between the United States and Brazil took a big step forward when they signed a Space Situational Awareness (SSA) agreement last year during a visit to Brasilia by former U.S. Defense Secretary James Mattis.

The accord on sharing real-time tracking data on objects and debris in space is needed to develop a satellite launching business without the risk of collision.

In December 2017, Boeing Co and Lockheed Martin Corp visited the Alcantara space center, which is especially attractive to smaller firms, such as Tucson, Arizona-based rocket-maker Vector Launch Inc because of its location.

But without the technology safeguard agreement (TSA) that protects sensitive American space launch and satellite technology, no U.S. rocket could blast off from Brazil.

A previous attempt at a U.S.-Brazilian space partnership was scuttled in 2003 when the TSA ran into resistance from the leftist government of former president Luiz Inacio Lula da Silva and was thwarted by Brazilian lawmakers.

It floundered because U.S. unverified access to the Alcantara base was not acceptable to Brazilian politicians on sovereignty grounds.

The TSA is seen by Washington as opening opportunities for greater cooperation in aerospace and defense between the two countries.

Source: Reuters

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Logistic companies gear up for online sales growth

08.03.2019

Large logistic and transport companies are expanding their distribution operations to meet the expected growing demand for shipping services from online sales. They are betting on rebound of consumption and counting on Amazon’s expansion in Brazil. Ebit | Nielsen estimates Brazilian e-commerce will grow 15% this year, to R$61.2 billion in sales. Last year saw […]

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Large logistic and transport companies are expanding their distribution operations to meet the expected growing demand for shipping services from online sales. They are betting on rebound of consumption and counting on Amazon’s expansion in Brazil.

Ebit | Nielsen estimates Brazilian e-commerce will grow 15% this year, to R$61.2 billion in sales. Last year saw a 12% increase to R$53.2 billion. With new consumers buying online and mobile shopping becoming more common, the projection is that orders will rise 12% to 137 million transactions. The average spending is estimated at R$447, up 3%. More consumers are migrating from physical retail to online, says Ana Szasz, Ebit | Nielsen’s commercial leader.

Online still represents a small share of retail sales. Brazilian Institute of Geography and Statistics (IBGE) and Ebit data show that online shopping accounted for 4.3% of the sales in the so-called restricted retail — which excludes vehicles and construction material — last year, up 0.24 percentage point.

But companies see huge potential in internet sales, which may grow more quickly if streets, roads and highways improve – products are purchased on the internet but the delivery happens in motorcycles, vans and trucks. Philippe Minerbo, director at Cosin Consulting, says the expectation is that the new government will accelerate the necessary works to enable growth in the sector.

“Brazil is a country with potential. In the United States, online sales are 10% of retail, but in China they are 25%. I believe the improvement of the structure will help [Brazil] reach the American level within five years,” says Gianfranco Sgro, global vice president of storage at Switzerland’s Kuehne + Nagel.

Loggi, which serves such companies as Dafiti, B2W, Mercado Livre and Amazon, plans to be making 60 million deliveries by 2020, compared with 36 million last year. Founded in 2013 by Arthur Debert and Fabien Mendez, the startup finally broke even in August 2018. Three months later, it received a R$400 million investment from Japanese company SoftBank.

Loggi already has two distribution centers in São Paulo, having opened the second one in October 2018. Financial chief Grégoire Balaski says Loggi will open its third distribution center in São Paulo and is studying other regions, but declines to review which.

This year, part of the investment will be in automation to receive shipments from online sellers and distribute them in 15 metropolitan areas. Since last year, Loggi’s 12,000 delivery men have been serving the largest cities in the North and Northeast regions.

The volume of deliveries is higher in e-commerce, but demand from restaurants including McDonald’s, Pizza Hut and Madero is also growing. The three chains rely on Loggi and other companies, depending on the consumer’s location, to deliver sales through their apps.

Competition is tight in the online meal delivery market. Consumers have a variety of apps at their disposal like iFood, Rappi and Uber Eats. Glovo, a Spanish company, could not handle the competition and after one year in Brazil shut down the operation this week.

JadLog expects to grow 40% this year, from the R$480 million revenue last year, half of it related to shipping for e-commerce. The company, which is controlled by Germany’s DPDgroup, intends to double investments this year. It will spend R$20 million in automation, new services, fleet renewal and expansion. The company operates 240 trucks and semi-trailers aside from 2,500 utility vehicles, of which it owns 1,500 and outsources the rest.

JadLog chief Bruno Tortorello says the firm will increase the number of pickup spots for online purchases. Today it has 3,000 spots, of which 1,000 in São Paulo state and 300 in Rio de Janeiro, and by the end of next year it will have 8,000. “We want to be at a walking-distance of no more than ten minutes from consumers,” he says.

Total Express, which last year had R$420 million in revenue, wants to expand product pickup offerings to retailers. The company owns a fleet and plans to hire more partner drivers this year.

Total, which is controlled by Abril, media group in bankruptcy reorganization since last year, intends to offer service of fast parcel delivery in 50 cities by the end of the first half. The service is already available in 23. Director General Ariel Herszenhorn says sales are projected to grow 25% to 30% this year, a similar expansion to that of 2018. He says the company had been reporting losses since 2014 but posted a profit last year.

UPS chief Nadir Moreno says online sales weigh heavily on its Brazilian operation. Globally, revenues grew 7.9% in 2018, to $71.9 billion. The American company doesn’t disclose local figures, but Ms. Nadir says it had two-digit growth last year.

DHL Express expects e-commerce to support its plan of doubling the Brazilian operation in terms of shipments and revenue over the next two years. Shipping for online vendors accounts for 30% of its traffic in the country. To accomplish its goal, the German company expanded its airport operation in Guarulhos, São Paulo.

Source: Valor Econômico

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Reform removes from Constitution all pension rules

28.02.2019

All pension rules, of the systems for public servants or private-sector workers, will be defined by complementary law if the reform proposal introduced by the Jair Bolsonaro administration passes in Congress. Only some general principles will stay in the Constitution. The reform’s constitutional amendment proposal (PEC) also establishes transition rules, which go into force while […]

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All pension rules, of the systems for public servants or private-sector workers, will be defined by complementary law if the reform proposal introduced by the Jair Bolsonaro administration passes in Congress.

Only some general principles will stay in the Constitution. The reform’s constitutional amendment proposal (PEC) also establishes transition rules, which go into force while the complementary laws don’t pass. This side of the government’s proposal, which until now had been little explored, started to see more discussions in Congress and by public servants.

This may be the last pension reform that will have to alter the Constitution. All future changes may be made through complementary law, whose passage requires absolute majority (half plus one) of the Chamber of Deputies and Senate members. Constitutional alterations demand approval by three-fifths of deputies and senators, in two rounds of voting.

Complementary laws will define calculation rules and the monetary adjustment of the benefits’ values, how the minimum retirement age increases because of the increase of life expectancy, the update of contribution incomes, the floor and cap of the contribution income, the eligibility requirements for each benefits, rules for benefit accumulation, conditions for special pensions, among others.

The reform does preserve in the Constitution, however, the minimum wage as the lowest value of benefit granted to rural retirees, to poor people aged 70 and older and to poor disabled people.

The PEC’s chapters which state the transition rules will stop being valid after the complementary laws pass. In other words, all rules the government announced in several interviews are transitory and valid only while the complementary laws don’t pass.

Source: Valor International

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New Central Bank chief signals continuity

27.02.2019

Roberto Campos Neto won Senate approval for the role of Central Bank president on Tuesday after offering several indications that he intends to continue along the lines of today’s BC chief, Ilan Goldfjan. While discussing monetary policy, the economist defended having a cautious, serene and persistent approach, echoing the same words selected by the Monetary […]

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Roberto Campos Neto won Senate approval for the role of Central Bank president on Tuesday after offering several indications that he intends to continue along the lines of today’s BC chief, Ilan Goldfjan. While discussing monetary policy, the economist defended having a cautious, serene and persistent approach, echoing the same words selected by the Monetary Policy Committee (Copom) in its latest two meetings to justify keeping policy rate Selic at the current level of 6.5%.

Mr. Campos Neto believes the current Central Bank board did an “excellent” job and allowed Brazil to lower inflation and anchor expectations. “This work was only possible, in my view, thanks to the effort for institutional credibility, which found itself weakened by the negative results obtained in 2015 and part of 2016. This reinforcement was based on transparency, caution, serenity and persistence conducting monetary policy, values that should be preserved and improved in whatever is possible,” the economist said.

After winning Senate approval, the government expects Mr. Campos Neto to be sworn in still this week at the Planalto Palace. Senators also greenlighted the nominations of economists Bruno Fernandes and João Manoel de Mello for the roles of director of Monetary Policy and Financial System Organization, respectively, as well as attorney Flávia Perlingeiro to head the Securities and Exchange Commission of Brazil (CVM). All 26 members of the Economic Affairs Committee (CAE) that conducted the confirmation hearings Tuesday morning voted for the four candidates, in a critical show of political support of the government’s nominees.

Mr. Campos Neto also advocated the so-called BC+ agenda, underscoring he intends to keep and deepen initiatives to lower bank spreads, increase competition and modernize the financial system. Mr. Campos Neto also stressed his professional experience and interest in new financial technologies. He underscored he wants to give special attention to such issues as fintechs, instant payments – allowing bank transactions at any time or day of the week – and open banking, a new concept of letting account holders share their bank data with other companies.

While responding to lawmakers’ questions about bank spreads in Brazil, Mr. Campos Neto even endorsed the BC arguments that several structural factors lead to them, but bank profits are the least important. He also downplayed the country’s banking concentration, arguing it is similar to that of Germany, England and Italy, and that there is still competition. Profits also make up a smaller share of spreads than in the rest of the world, he said.

For the new BC president, loan defaults, financial costs and taxes weigh heavier in spreads. He said the BC already has some initiatives to address the issue, such as credit history and better guarantees, including electronic trade bills. The economist also pointed out the importance of encouraging capital markets, mainly to ensure access to small and midsize companies.

Mr. Campos Neto also endorsed a bill making the Central Bank independent and advocated the pension reform proposal, stressing how this and other fiscal adjustments are critical for the sustainability of the public sector. “Fiscal stability is fundamental to lower uncertainties, increase confidence and investments, and consequently to deliver long-term economic growth. I’m certain we’ll advance in this direction,” he said.

Mr. Mello, who will handle regulatory matters, launched in his hearing a broad defense of financial competition as a tool to lower credit costs. He said competition must be encouraged with legislative measures and “constant vigilance” of market concentration events.

Mr. Fernandes, who is poised to take over the monetary policy department, said the unwinding of expansionary fiscal policies among rich countries, and weakening of Brazil’s main trade partners, represent risks to the country.

Bradesco CEO Octavio de Lazari Jr. said he expects the new BC’s management will be of advance in topics such as efficiency and modernization of the financial system. For him, Central Bank independence and the structuring of sustainable bases for credit growth are “fundamental pillars” for this, he said in a statement.

Candido Bracher, chief executive of Itaú Unibanco, praised Mr. Campos’ intention to continue “the good work carried out by the previous management” in conducting monetary policy and controlling inflation.

Source: Valor International

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Government will cut bureaucracy of opening a business

26.02.2019

The government plans to issue this week a provisional measure that establishes the automatic registration of small and medium-sized businesses. It is likely to reduce the time necessary for setting up firms, with the issuance of the business registration number (CNPJ) taking one rather than seven days, the secretary of De-bureaucratization, Management and Digital Government […]

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The government plans to issue this week a provisional measure that establishes the automatic registration of small and medium-sized businesses. It is likely to reduce the time necessary for setting up firms, with the issuance of the business registration number (CNPJ) taking one rather than seven days, the secretary of De-bureaucratization, Management and Digital Government of the Economy Ministry, Paulo Uebel, told Valor.

The same provisional measure (MP) will also take a step toward trying to reduce the longtime problem of excess of notary requirements. Now, the lawyer or accountant of these firms may declare the authenticity of documents presented in their foundation without need of notary certification.

The simplified registration will be allowed to companies classified as limited liability, individual company of limited liability or individual micro-entrepreneur, which, according to Mr. Uebel, account for 96% of the annual registration filings. He also said that fewer than 1% of filings are rejected.

Even though the average registration period is seven days, it can take up to 30 days, from the filing and considering the analysis of documentation. The idea now is to invert the process, giving automatically the registration and then verifying whether there is any problem or irregularity. In case some situation not allowed is found, the authorization is overturned.

Mr. Uebel believes this measure is important for the country to improve its position on the World Bank’s “Doing Business” ranking, which shows the countries with better business environment. Brazil is currently number 109 and the Jair Bolsonaro administration aims to reach the number 50. “The measure aims to speed up the process of starting businesses and may have big impact in Doing Business,” Mr. Uebel said. “The automatic CNPJ issuance will allow the business owner to set up immediately the business, such as leasing space, buying inputs and hiring employees,” he added.

Regarding the initiative of no longer requiring document authentication, he stressed that the goal is also to cut red tape and costs. The measure not only does away with this procedure, but also with the owner’s appearance at the Commercial Registry, leaving in charge of the accountant or lawyer the necessary procedures and the manifestation of reliability of documents. “Now the business owners will no longer need to go personally to the registries nor having to deliver original personal documents to facilitators,” he said. “We will trust the people.”

For him, the measure doesn’t reduce the security or raises the risks of frauds, because the necessary verifications will be made. And the idea is to move toward this practice in a series of other activities. “In all low-risk activities we will move toward the declaratory model, which has no irreversible impacts to society, damage to its health,” he said. “We want to identify what we can make easier. We will focus on what is complex and simplify what is simple. We will focus on what is medium and high risks,” he said.

Source: Valor International

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