Fundo de Amparo ao Trabalhador (FAT): breve histórico, condições atuais e perspectivas

Abstract

The Workers’ Assistance Fund (FAT) has rapidly turned into the main source of funding for BNDES since its creation. Its share on the Bank liabilities has peaked to 60% in 2007 and start to decrease just because of the massive amount of funding provided by the National Treasury from 2007 to 2014. As BNDES pays this funding back, however, the FAT will soon take the position of BNDES main source of funding again. Nevertheless, the FAT financial conditions raise concerns as it has run deficits almost uninterruptedly since 2009. This article aims to contribute in this discussion. First, we present the historical background, the main characteristics and the actual financial conditions of the FAT. Then we simulate the financial results on four different scenarios in order to assess the financial sustainability of the fund in the medium and long-term. The main conclusion is that fiscal reforms on the unemployment insurance and other expenditures are needed in order to assure the FAT financial sustainability in the coming years.