Good morning! Today, government companies posted dreadful results in 2020. Threat of a truckers’ strike looms once again. Friendly with Bolsonaro, prosecutor general gets another two years. Another avenue toward impeachment?
State-owned firms hemorrhaged money during pandemic year
Brazil’s 46 federally-controlled companies combined for profits of BRL 60.6 billion (USD 51.4 billion) in 2020, a drop of 45 percent in comparison with 2019, according to a report by the Economy Ministry.
Why it matters. These companies account for 5.3 percent of Brazil’s GDP.
Best performers. Banks (such as Caixa, Banco do Brasil, and the National Development Bank — BNDES) were responsible for 77 percent of profits, followed by energy behemoth Eletrobras (BRL 6.4 billion) and oil giant Petrobras (BRL 6.2 billion).
Worst performers. Transport companies suffered greatly from pandemic-related restrictions. Airport administrator Infraero recorded BRL 2.2 billion in losses, while the Brazilian Public Trains Company took a hit of BRL 500 million.
Dependence. In 2020, the government transferred BRL 19.4 billion to 23 federal companies, down 32 percent from the previous year. Of these firms, only four are not wholly dependent on government funding to operate.
- Most transfers went to health-related companies.
- Meanwhile, oil and energy companies — such...