{"id":107807,"date":"2021-02-24T00:40:37","date_gmt":"2021-02-24T00:40:37","guid":{"rendered":"https:\/\/fin2me.com\/?p=107807"},"modified":"2021-02-24T00:40:37","modified_gmt":"2021-02-24T00:40:37","slug":"bolsonaro-delivers-eletrobras-privatization-measure-to-brazils-congress","status":"publish","type":"post","link":"https:\/\/fin2me.com\/business\/bolsonaro-delivers-eletrobras-privatization-measure-to-brazils-congress\/","title":{"rendered":"Bolsonaro delivers Eletrobras privatization measure to Brazil's Congress"},"content":{"rendered":"
BRASILIA (Reuters) – Brazilian President Jair Bolsonaro went to Congress on Tuesday to deliver a provisional measure associated with his government\u2019s plans to privatize state-run electricity provider Eletrobras.<\/p> Bolsonaro, who is under fire for announcing a shakeup at Petrobras that sent the oil company\u2019s stock tumbling due to fears of government meddling, delivered the measure in person to show his commitment to privatizing state firms.<\/p>\n \u201cOur privatization agenda is going full steam ahead,\u201d he said after meeting with the leaders of Congress.<\/p>\n Senate head Rodrigo Pacheco and lower chamber Speaker Arthur Lira said the measure, a decree that requires congressional approval, would be fast-tracked.<\/p>\n Preferred and common shares in Eletrobras soared after a Reuters report on Tuesday that the government was to unveil the privatization measure. Preferred shares rose more than 10% by end of afternoon trading.<\/p>\n \u201cThe provisional measure signed by President Bolsonaro authorizes the start of the procedure needed to enable a future privatization of Eletrobras and its subsidiaries,\u201d said a statement issued by the ministries of Economy and Energy.<\/p>\n The measure, which would allow development bank BNDES to work on the privatization of Eletrobras, excludes only two of its units: Brazil\u2019s nuclear energy company Eletronuclear and its stake in the Itaipu dam, a partnership with Paraguay.<\/p>\n A government source said the measure should \u201csignal\u201d to the market Bolsonaro\u2019s commitment to the sale after his decision to replace the CEO of Petrobras, announced on Friday in a social media post, led to doubts over his divestiture plans.<\/p>\n Petrobras shares plunged 22% on Monday, wiping out 71 billion reais ($13 billion) in market value, as Bolsonaro again slammed its pricing policies after he moved to replace the company\u2019s market-friendly CEO with a retired army general.<\/p>\n Shares recovered by rising 12.7% on Tuesday, but uncertainty remains in the market as to possible interference by Bolsonaro in the company\u2019s fuel pricing policy with a view to boosting his popularity ahead of a 2022 re-election bid.<\/p>\n