Government and Eletrobras Change Privatization Schedule and See Elections as A Challenge

Members of the Executive and the company seek to maintain optimism, but fear market turmoil

The Federal Court of Auditors (TCU) request to analyze the privatization of Eletrobras for another 20 days has led the government and the company to change the privatization schedule. But they hope to finalize the privatization this year. The sale of company shares is among the main priorities of Minister Paulo Guedes (Economy) in the final stretch of the term of President Jair Bolsonaro (PL).

Executive and company members interviewed by Folha sought to demonstrate an optimistic view this Thursday (21) by saying that privatization can still happen in a window that closes in mid-August. They reinforced that there are no legal impediments for the operation to occur so close to the elections that the Bolsononaro administration is completely behind it.

However, market conditions in 2022 are recognized by these people as the main risk of the process. The operation will be carried out on the Stock Exchange, so the approximation of the electoral calendar tends to increase tension between investors and may, consequently, make the operation unfeasible. The more time passes, the greater the risk of turmoil.

Translated by Kiratiana Freelon

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