Brazil: Bolsonaro to privatize companies looking for US $ 175,000,000

The Brazilian state controls 130 companies, including giants such as Eletrobras -generator of a third of electricity in Brazil-, which was already in the list above.

PetrobrasThe gem of the crown remains out of the payroll although the markets were encouraged Wednesday by the leaders of the economy indicating that they could be on the list before 2022, date of the end of the term of Bolsonaro. The company's shares gained more than 5%.

Bolsonaro asked last week to speed up the destabilization process by privatizing "at least a small business a week".

The government's initial plan is to raise R $ 1.3 billion, but with the announcements on Wednesday, the sum could reach $ 2 billion ($ 500,000 million), said the Minister of Civil House (head of government) , Onyx Lorenzoni. during a ceremony at the Presidential Palace of Plbadto.

In addition to Correos and the port of Santos, the package includes Telebras (telephony), Dataprev and Serpro (data processing), as well as badet management companies such as ABGF and Emgea, technology companies such as Ceitec and the Depository and Warehouse Company. from Sao Paulo.

The prospect of announcements has encouraged investors. The Sao Paulo Stock Exchange closed up 2%, while the Eletrobras common stock jumped 12.39%. In the previous package, apart from Eletrobras, were mints and lotteries.

President of the Workers' Party (PT, leftist opposition), Gleisi Hoffmann, denounced the sale of "strategic goods", to the detriment of Brazil's "sovereignty". The BNDES Development Bank has to define the models for the transition from the control of each company to private hands.

"Some companies will have a very simple model, they will hardly need an authorization, but for others, the Constitution will have to be changed," said Margarida Gutierrez, professor of macroeconomics at the University of California. 39 Coppead Institute of the Federal University of Rio de Janeiro (UFRJ).

This is due to the fact that state-owned subsidiaries can be sold directly, as decided by the Supreme Court in June, opening the door to the sale of the TAG pipeline network, a subsidiary of Petrobras, to a consortium led by French Engie, $ 8.600 million.

Gutierrez states that "most [estatales] they are completely ineffective "and that their destabilization will give" more efficiency of productivity and advance in structural reforms ".