Ricardo Guimarães Thinks Brazil’s National Debt Is Out Of Line

Brazil pays almost $R17,300 per second in interest on a national debt that is more than $R5,909,444,000. The total interest on that debt is more than R$547,528,987,000 per year, and the debt represented almost 59 percent of the gross domestic product in 2014, according to BMG Bank President Ricardo Guimarães. Guimarães thinks the national debt is out of line, and the government is too out of touch to control it. When China hit a financial and manufacturing wall in 2014, Brazil started to fall apart, but there were signs that the economy was headed for trouble before it actually happened, according to some economists. Brazil was too dependent on exports, and when the price of oil, iron ore, and other resources started to decline, the government did nothing to stop the hemorrhaging, according to Guimarães.
In a recent R7.com article, Chinese President Xi Jinping said China’s GDP growth rate would stay around 6.5 percent for the next five years, and that rate would be enough to reach China’s five-year plan. But the article voiced Guimarães skepticism about China’s growth citing the fact that China’s weak consumer market will not produce a 6.5 percent growth rate. Most economists agree with Guimarães. China’s manufacturing base is eroding, and prices continue to impact China’s export business. Even after China devalued their currency in order to increase their export business last year, it didn’t kick-start the economy that much.

Guimarães is not an economist. He is a banker and an entrepreneur that understands the world market. R7.com interviewed Ricardo recently, and he said Brazil needs more entrepreneurs that understand the world market. Most Brazilian entrepreneurs don’t have the fortitude or the insight to understand the global market because Brazil has always been a relatively closed market until recently. Brazilian entrepreneurs have grand dreams, and they are as creative as any entrepreneurs in the world, but a large percentage of them lack the proactive nature that makes good entrepreneurs great, according to Guimarães.
Ricardo Guimarães is a Brazilian entrepreneur that acts on his dreams. He has proven that one man with vision and a proactive plan can change the course of business. Guimarães has done that with sports sponsorships in Brazil. BMG Bank now sponsors more than ten Series A soccer teams, and BMG Bank’s business has doubled because of Guimarães concept of investing money in sports to promote bank products.
According to a CrunchBase.com article, Ricardo has increased the 86-year-old bank’s profits using Brazil’s love of football as the base. Brazilians are serious about soccer, and BMG Bank has become synonymous with soccer across the nation. Football fans recognize the orange BMG logo at game time, and when they need money, BMG is the first bank they call. BMG has more than 800 qualified agents in place to handle those calls.

Follow Ricardo Guimares on Twitter.

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