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Home Business Bolsonaro is advised to send MP soon to privatize Eletrobras and Correios

Bolsonaro is advised to send MP soon to privatize Eletrobras and Correios

Presidential aides advised Jair Bolsonaro to send to the National Congress, this week, the provisional measure (MP) and the bill that streamline the privatization processes of Eletrobras and Correios, respectively.

Sending the proposals would be a nod to the financial market and investors to try to contain the wear and tear with the change in command at Petrobras, interpreted by economic agents as a political interference by the Planalto Palace in the oil company.

According to the CNN with sources from the economic area, the MP should include Eletrobras in the National Privatization Plan and allow the BNDES (National Bank for Economic and Social Development) to start the privatization studies of the state company.

President Jair Bolsonaro during ceremony in Brasilia
Photo: Adriano Machado / Reuters (19.out.2020)

The content of the MP will be similar to that of a bill on the topic sent by the government in 2019, but which is stalled in the Chamber due to political resistance. An MP takes immediate effect for up to 90 days, but needs to be approved by Congress to become a definitive law.

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The strategy of the economic team is for the development bank to start studies as soon as the provisional measure is issued by the government so that, when the legislature approves the final text, the government already has more advanced results.

The Correios project has been in the Plateau since October 2020, when it was delivered by the Minister of Communications, Fabio Faria, to undergo analyzes by palace ministries. The proposal deals only with the principles for the privatization of the company.


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