Thursday , February 25 2021

Bolsonaro government to set up Privatization Secretariat – 11/20/2018 – Market

Future finance minister Paulo Guedes reaffirmed Tuesday (20) to create a privatization secretariat.

It will have the task of coordinating the sale of state assets, such as real estate and public plots, under the Jair Bolsonaro government.

Guedes did not give details of the structure of the secretariat, which will be linked to the Ministry of Economy. Today, it is the assignment of Planning.

The secretariat should also oversee the management and investment of state-owned companies that remain in the government portfolio.

The Transitional Group is still discussing what will happen with the PPI (Partnership and Investment Program), which is now linked to the Presidency of the Republic and is responsible for coordinating infrastructure concessions.

The draft discussed Tuesday suggests that the PPI will be under the direction of Deputy General Hamilton Mourão, or a name indicated by him. The secretariat will be responsible for co-ordinating privatizations of state-owned enterprises, selling fixed assets and concessions for infrastructure.

Since the election campaign, Guedes has defended the privatization of state-owned companies as a way of creating cash and reducing public debt in the country. He also said in an interview that there are about $ 1 trillion in assets to be privatized.

The subject was a subject that Wainscott addressed to other offices in Brasilia this Tuesday. In a meeting with the head of the political household, Eliseu Padilha and Infrastructure Minister Michel Temer, received information from the current administration on unfinished projects, the status of the energy distributors for sale (Amazonas and Alagoas) must be reconciled and railway contracts that can be renewed.

STA member Dias Toffoli, João Otávio de Noronha and Union Court of Auditors, Raimundo Carrero, spoke at lunch with the chairmen of the federal upper court (STF). size of the state and reduce the debt.

At the exit, Noronha told reporters that the judiciary would not oppose the privatization agenda of the Bolsonaro government. "This is not a matter of judicial power, the judiciary complies with the law, does not formulate economic policies, and if a law comes to privatize it must be fulfilled, we can not be against or favor," he said.

The subject was also the subject of Guedes' meeting with the CCBB transition group, the meeting point of the transition group, all afternoon.

Arriving at the transition office on Tuesday, he noted that the name of the next president of the Bank of Brazil has not yet closed, although the current chairman of Petrobras, Ivan Monteiro, is one of those mentioned.

Former BNDES manager and member of the group, Carlos da Costa said privatizations tend to increase the country's potential GDP. Together with other measures that increase the economy's profitability, the country could increase by 5% by 2020, in its forecasts.

"State-owned companies reduce the productivity of countries by making decisions that do not necessarily go hand in hand with consumers, shareholders, society as a whole, and it is natural for privatizations to increase our potential GDP, one of our government's main goals "he said.

According to him, one of the transition group groups assesses which assets need to be privatized.

"This creates jobs, prosperity, wealth that Brazil deserves after so many years of recession," he said.

With Reuters

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