by Marcela Ayres
BRASÍLIA (Reuters) – Economy Minister Paulo Guedes waved at Petrobras’ privatization on Monday when he suggested “thinking boldly” about the company, and stressed that the mere mention of this possibility by President Jair Bolsonaro was enough to make the oil company’s actions soar.
“There’s no point in keeping a sign saying that it’s state-owned and oil doesn’t leave the ground, and when it does, it leaves with corruption,” Guedes said while participating at the Palácio do Planalto in the launch of the National Plan for Green Growth.
Bolsonaro confirmed this Monday, in an interview with a radio station in Mato Grosso do Sul, that the privatization of Petrobras “has entered the radar” of the government.
In turn, the government leader in the Senate, Fernando Bezerra (MDB-PE), said that the federal government is considering sending a bill to Congress aimed at selling shares and privatizing the company.
“All it took was for the president to say ‘look, let’s study this, this is a problem’ and the business rises by 6%. Suddenly it’s another two, three weeks, if that happened, 100-150 billion (BRL) created, this it didn’t exist,” said Guedes. “Can’t you give 30 billion to the weakest at a terrible time like this if one sentence from the president is enough to make 100 billion appear, suddenly sprout out of the ground? Why can’t we think boldly about it?”
Also driven by the readjustment in fuel prices, Petrobras’ preferred shares ended the trading session this Friday up 6.84%, while common shares advanced 6.13%, helping to guide the rise of 2.28 % of Ibovespa.
Guedes once again defended the channeling of resources to Auxílio Brasil, recognizing that, either with a request for extra-ceiling expenses or with a review of the ceiling rule itself, “the truth is, there will be a little higher spending”, of the order of “30 and a few billion”.
The government’s clear indication last week of the intention to circumvent the cap rule, considered the only credible fiscal anchor in the country, to accommodate an expansion of Brazil Aid in an election year increased the risk perception of agents regarding the Brazilian economy, with reflexes in the fall of the stock market, increase in future interest rates and the soaring of the dollar against the real.
The Minister of Economy again defended that the government could not take 10 in fiscal policy and zero in social sensitivity, stressing that the granting of a minimum benefit of 400 reais to families under Auxílio Brasil was a request by the president, “which in fact is a command”.
Guedes also stated that the successor to Bolsa Família will be a prototype of the minimum basic income and that this idea was already included in Bolsonaro’s electoral program.
The minister once again reinforced expectations for economic growth next year amid reviews by major banks on this performance, noting that the release of the September data from Caged, which will be made on Tuesday, will show the creation of more 300,000 jobs in the country.
Guedes also said that the federal collection has broken records and is already 300 billion reais above the forecast.
“The question is: for a country that collected 300 billion (of reais) more than last year, 30 billion (of reais from Brazil’s Auxílio) is 10%,” he said.
The minister also sought to highlight his alignment with the president after speculation about his departure from the government last week — many of them fueled by members of the Executive’s other portfolios — following the resignation of the highest level of the National Treasury.
“It’s always like this, I’m drowning, he appears, renews confidence and we continue this alliance of conservatives and liberals for a better future for our country,” he said.
Regarding the National Green Growth Plan, the Minister of Economy said that it was an initiative to show the world that Brazil has the largest stock of preserved natural resources and that it cannot be treated as a villain of international pollution.
In the same way that the government has the Investment Partnership Program (PPI) to coordinate investments in the conventional economy, it will now have a green growth committee that will integrate the Ministries of Agriculture, Environment, Economy and public banks , said Guedes.
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