RIO DE JANEIRO, BRAZIL - The use of Treasury resources to rescue banks has been banned since 2000 when the Fiscal Accountability Law (LRF) was promulgated. Now, Bolsonaro's plan is that, once all the steps to rebalance these institutions' accounts have been exhausted, the federal government will take part in their rescue.
Article 45 of Bolsonaro's government proposal provides that, in case of risk of systematic crisis or a threat to the solidity of the National Financial System, of the Brazilian Payments System or the National System of Insurance, Capitalization, Reinsurance and Open Complementary Welfare, the National Monetary Council . . .