São Paulo’s Doria says he will privatize Bank of Brazil and Petrobras if elected president in 2022

RIO DE JANEIRO, BRAZIL – São Paulo governor and PSDB candidate for the 2022 elections, João Doria, told the Correio Braziliense website that he plans to privatize Banco do Brasil and Petrobras if elected president.

“I am in favor of privatization, not to transform a public monopoly into a private monopoly, but a model that allows Petrobras to be divided into several companies and their shares sold on the Brazilian Stock Exchange. It is the same model that the United States has followed,” he explained.

For the governor of São Paulo, it is necessary to create a regulatory fund to balance the price of fuel and gas in case of increases in the international market. Last month, the politician had already announced that he would carry out the privatization of Petrobras if he succeeded in taking the top post in the country.

“In addition to a divided company, I advocate the mandatory creation of a regulatory fund. If oil prices rise in the international market, this regulatory fund will prevent the increase from being directly reflected in the price of fuel or gas.”

Doria said he could not speak “on behalf of the PSDB,” but the privatization of the Bank of Brazil is also on his agenda if he wins the election.

“If I win, the Bank of Brazil (BB) will be privatized. It has good professionals and a good structure. However, there is no need to have two [state-owned] banks (Caixa Economica Federal and Banco do Brasil).

“BNDES, on the other hand, does not. It can be transformed to effectively fulfill the role of a bank for economic and social development, especially for micro, small and medium enterprises. And that it becomes a regulatory agency.”

For the full picture, see our Brazil Tax Reform: Complete Guide.