Energy Seminar: Joaquim Levy
- Monday, May 18, 2020 4:30 PM
- NVIDIA Auditorium, Jen-Hsun Huang Engineering Center
- More Info:
- Energy Seminar: Joaquim Levy
- General Public
- Precourt Institute for Energy
As head of BRAM (2010-2014), the asset manager controlled by the second largest private bank in Brazil, Joaquim had US$ 130 bn under management and introduced several innovative funds that continue to bring value to investors to this day. He also mainstreamed sustainability criteria in portfolio selection and partnered with Bloomberg to automate processes, increasing the company´s efficiency and compliance standards.
While Minister of Finance (2015), Joaquim changed economic policies profoundly, addressing the damage created by the “New Economic Matrix” (2011-14) and excessive lending by public banks. In addition to recapitalizing BNDES and Banco do Brasil to the tune of BRL 20 bn with the help of Congress, Joaquim freed fuel prices, fixed serious dysfunctional aspects of the electricity sector and closed tax loopholes. In the midst of great political turbulence he succeeded in approving legislation that regularized almost US$ 100 billion dollars in resources held by Brazilians off-shore. This law (RERCT) solved a problem lingering for more than a decade, generating tax revenues of BRL 50 billion that benefited Brazil’s poorest states most.
Many actions in 2015 reintroduced the values that underpinned Joaquim´s work as Secretary of the National Treasury (2003-2006), when public spending was restrained, the credit rating of the public debt improved by several notches, a new market for long-term public bonds (NTN-B) was created, mobilizing more than BRL 400 billion in foreign flows, and the now very popular on-line Tesouro Direto investment tool for small investors in public bonds was consolidated.
Joaquim's PhD in Economics from the University of Chicago and his experience with developed economies and capital markets at the IMF in the 1990s were valuable when he was called by the Brazilian government to help closing the multibillion gap at the FGTS workers’ savings funds (2000-1), create a secondary market for electricity rights during the electricity shortage (2001-2), and in several other occasions. The State of Rio de Janeiro obtained its investment grade when Joaquim was its Secretary of Finance. Joaquim strengthened Brazil's Savings Bank (CEF) reserves when he was on its board of Directors (2003-6), contributing to the institution's profits in later years. At the supervisory committee at Vale (Conselho Fiscal), he monitored the adoption of Sarbanes-Oxley rules by the mining company. As president of the National Development Bank—BNDES (2019), he brought a new degree of transparency to the bank’s activities, while supporting privatization efforts by national and subnational governments.
Joaquim was the World Bank Group CFO (2016-18) when IDA, the bank’s arm dedicated to help the poorest countries, completed its 18th Replenishment, raising resources to finance a record US$75 billion three-year investment program. He also led the capital adequacy evaluation of IBRD—the bank’s arm to help middle income countries, helping unlock the largest ever capital increase of the institution in 2018. As Managing Director of the Bank, Joaquim worked with the G20 Financial Stability Board to promote new regulations for investors in infrastructure, expand green bonds, and facilitating international remittances.
Free and open to all.