Good morning! Privatizations not a short-term reality in Brazil. The president is heading to Texas. Benchmark interest rates continue at lowest-ever.
Privatizations not a short-term reality in Brazil
Last year, Economy Minister Paulo Guedes promised to lead the boldest privatizations plan in Brazilian history—selling off all 138 companies owned by the federal government. Then, in January, he pledged to raise BRL 20bn from said deals. But the goal will not be achieved—as privatizations need congressional approval, and the administration already has its plate full with the pension reform as it is. The bulk of the plan will be set into motion no earlier than 2021.
According to federal privatization secretary Salim Mattar, the process of setting up a privatization auction takes between 6 months and a year, in order to comply with federal law. Instead, Mr. Mattar defended a short-term divestment