Brazil government to submit two privatizations to Congress this week

RIO DE JANEIRO, BRAZIL – The government’s top officials have prepared a sturdy plan to dispel the financial market’s unease after President Jair Bolsonaro demanded the resignation of Petrobras’ CEO, Roberto Castello Branco.

Three measures should be taken by the end of this week: 1) presidential sanction of the Central Bank’s autonomy (Planalto Palace); 2) submission of the Correios privatization project (Ministry of Communications); 3) submission of the Eletrobras capitalization project (Ministry of Mines and Energy).

These initiatives are coordinated between the Planalto and Chamber president Arthur Lira (PP-AL), who sees a window of opportunity for Congress to pass the privatizations.

This is the government’s way of saying that the liberal agenda has not been abandoned, even if the market is complaining about the unexpected way in which the demand for changes at Petrobras was made.

If the projects progress, they will be the government’s first major privatizations.

Among the priority privatizations chosen by Economy Minister Paulo Guedes, only the Port of Santos and PPSA, the company that manages the pre-salt, are still pending.

Source: Veja

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