Caixa defines rules for the purchase of Eletrobras shares with FGTS

Eletrobras privatization can only be done in 2023 (Credit: Arquivo / Agência Brasil)

Caixa Econômica Federal published, in the Official Gazette (DOU) of last Monday (10), the rules for using 50% of the Severance Indemnity Fund (FGTS) in the purchase of Eletrobras shares, in case of privatization. Together with the Correios, the electric energy company is the government’s priority for privatization.

The Eletrobras privatization model was defined in October 2021 by the Investment Partnership Program Council (CPPI), which provides for the sale of R$ 23 billion in shares.

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Thus, workers can use half of their FGTS balances to purchase these papers – up to BRL 6 billion from the FGTS can be used to purchase shares, which will be made through FGTS-linked Privatization Mutual Funds (FMP-FGTS) .

The FMP-FGTS, according to Caixa, “are constituted in the form of an open condominium, in which exclusively individuals holding FGTS linked accounts participate”.

The practice is nothing new: in 2000, workers were able to use the FGTS to buy Petrobras shares. In 2002, the same happened with the mining company Vale.

According to a note from the Ministry of Economy to UOL, authorization from Congress or the FGTS Board of Trustees will not be required.

What are the rules?

– Workers can apply up to 50% of the value of the FGTS account, but those who invested in other funds, such as Petrobras or Vale, will have the amount discounted;

– Minimum of R$ 200 for the purchase of Eletrobras shares;

– Authorize the FMP chosen by the worker;

– Shares sold in the future return, in cash, to the FGTS;

– Consultation and debit request for application can be made through the FGTS application (android or iOS);

– Individuals without FGTS funds can also buy Eletrobras shares with investments between R$ 1 thousand and R$ 1 million;

– As there is no forecast for the privatization of Eletrobras in the 2022 Budget, the measure can only take place in 2023. There is no set date for purchasing the company’s shares.