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Brazil's Minister of Economy, Paulo Guedes, said during a web event this Tuesday that Brazil "is about to" join the Organization for Economic Cooperation and Development (OECD) which the Brazilian government has plans to launch a public offering of shares (IPO) for the newly-created digital bank of Caixa EconÃ´mica Federal.
Caixa EconÃ´mica Federal created a digital bank during the pandemic to assist the govt send aid to around 64 million Brazilians. Guedesâ€™ comments came during the Milken Institute Global Conference, during which he said that the financial institution is functioning to draw in new investors for the country.
One of the ministerâ€™s bets is on the digital bank recently created by the state-owned Caixa EconÃ´mica Federal, which is a component of Guedes's privatization plans.
During the pandemic, the govt spent heavily to combat the economic effects of COVID-19. the most important a part of that fiscal support was emergency payments for low-income Brazilians, with Caixa playing a central role in identifying beneficiaries and paying benefits.
The initiative, Guedes assured the audience, generated a digital bank with 64 million users, opening up market opportunities.
According to Reuters, Guedes says that Caixa's customer base has led to plans for an IPO for the digital bank, which wacreated "in six months" to pay government benefits:
According to Brazilian website InfoMoney, Guedes also said that the financial institution will work to â€œguaranteeâ€ less risks to foreign investors:
Guedes also said that Brazil has already fulfilled two thirds of the wants to be accepted within the Organisation for Economic Co-operation and Development (OECD) and will definitely enter the organization "in one year".
Among the benchmarks that Brazil must meet to enter the OECD are transparency, regulation, combating corruption and therefore the establishment of acquisition protocols.