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Pension Reform Can Yield Savings of Up To $1.3 Trillion in 10 Years, Says Guedes

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Economy Minister Paulo Guedes said on Wednesday that the government’s planned pension reform proposal could yield an economy of $700 billion to $1.3 trillion in 10 years, to reach two-thirds more than the previous government’s effort, which failed.

In an interview with Reuters during the World Economic Forum at the Swiss ski resort in Davos, Guedes stressed the scale of a pension reform that investors see as the cornerstone of President Jair Bolsonaro’s economic agenda.

“We are studying the numbers and they range from 700 to 800 billion to 1.3 trillion dollars, so it is a significant reform and will give us an important structural fiscal adjustment,” Guedes said.

“This will have a powerful fiscal effect and will settle for 15, 20, 30 years,” he said, adding later: “This is it or we follow (the path of) Greece.”