Mess in Brazil's Megacity Dwarfs Wider Problem With Pensions
- Sao Paulo finance secretary cutting expenses, tapping banks
- City’s pension system risks insolvency in 2019, he says
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After almost two decades in the private sector, Caio Megale traded his desk in Sao Paulo’s fancy financial district for digs in the old downtown and a new, daunting challenge: manage the finances of a megacity home to more than 12 million people.
Megale, 42, who was previously an economist at Itau BBA, the wholesale banking arm of the nation’s largest bank by market share, now spends his days as finance secretary discussing issues such as tax collection and public transport subsidies. But what really keeps him awake at night is the trouble brewing in Sao Paulo’s pension system: it risks becoming insolvent in 2019.