Pension Reform Bill Passes First Test

The Development Will Be Seen As a Victory for the Government in an Effort to Address the Country’s Fiscal Issues. The Ibovesta Index Rose to 96 Thousand Points

The Social Security Reform Project Passed Its First Crucial Test This Tuesday (23), When the Congressional Committee in Brasília Voted That the Proposed Legislation Was Constitutional and Could Move Forward to Congress. The Development Will Be Seen As a Victory for the Current Government and the Minister of Economy, Paulo Guedes, Who Lead the Reform Plan, Which Is Seen As Necessary to Stabilize Brazil’s Fragile Economy and Encourage Foreign and Domestic Investments.

Guedes Expects That the Social Security Reform Project Can Address Brazil’s Precarious Fiscal Position by Reducing Pension Payments of R$ 1 Trillion (US$ 255 Billion). But Companies Across the Country Have Also Joined the Project As a Test to Determine Whether the Government Will Be Able to Pursue Its Broader Economic Agenda, Including Plans for Privatizations and Deregulation.

Markets Turned Positive on Tuesday When News Broke That the Commission on Legal and Constitutional Affairs Would Vote on the Project. The Benchmark Bovespa Index Rose 1.4%, Nearing 96 Thousand Points.

The Reform Package Will Now Be Reviewed by a Congressional Committee Before Moving to the Chamber of Deputies and – If Successful There – the Senate. Many Analysts Believe That the Project Could Be Approved by the Third Quarter of This Year.