Brazil Congress Green-lights Eletrobras Privatization

Brazil Congress green-lights Eletrobras privatization

Braslia, (UrduPoint / Pakistan Point News - 22nd Jun, 2021 ) :Brazil's Congress passed a bill Monday paving the way to privatize the biggest electric utility in Latin America, state-controlled company Eletrobras, a victory for far-right President Jair Bolsonaro's privatization agenda.

The bill, which sets up a share issue that will dilute the government's stake in the company, passed the lower house by a vote of 258 to 136.

Lawmakers must still vote on a series of amendments before sending it to Bolsonaro.

It had already passed in the Senate.

The legislation will reduce the government's stake in Eletrobras from 51.

82 to 45 percent, via a share issue penciled in for early next year that the state estimates will raise 25 billion reais (around $5 billion).

The government will, however, retain a "golden share" in the company giving it the final say on strategic matters.

Created in 1962, Eletrobras is one of Brazil's "big four" state-controlled firms, along with oil company Petrobras and banks Banco do Brasil and Caixa Economica Federal.

Bolsonaro's ultra-liberal economy minister, Paulo Guedes, has said the privatization will save Brazilians up to 7.4 percent on electricity.