Large-scale Privatization Plan to Begin in Brazil

By Sinikka Tarvainen (dpa)


HAVANA TIMES – Brazil’s new government will privatize 12 airports and four ports, a move which will help it earn 7 billion reals (1.85 billion dollars), President Jair Bolsonaro says.

“We will soon attract initial investments of around $7 billion reals, with rail concessions, 12 airports and 4 port terminals,” Bolsonaro tweeted on Thursday.

He said infrastructure will be developed “with investor confidence” and “in conditions favorable to the population.”

The government of the far-right president, who took office on Tuesday, has announced a liberal economic program including a “minimal state,” privatizations, tax reduction and simplification.

The government is also planning a pension reform that will reduce inequality between retired people in Brazil, Economy Minister Paulo Guedes said on Wednesday.

The liberal economist heads a new “super-ministry” combining the previous portfolios of economy, planning, and industry and commerce.

Financial markets meanwhile reacted positively to Bolsonaro taking office.

The benchmark Ibovespa index rose 3.56 per cent on Wednesday and closed with a new record at 91,012 points.

The Brazilian real also posted strong gains on the first working day under the new head of state, appreciating 2.08 per cent against the US dollar.

The International Monetary Fund expects economic growth of 2.4 per cent this year in Brazil.

Whether Bolsonaro really succeeds in stimulating the sluggish economy in Latin America’s largest country depends on whether he can muster a majority in Congress for radical reforms such as that of the fiscally burdensome pension system, analysts from the ratings agency Fitch wrote.

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One thought on “Large-scale Privatization Plan to Begin in Brazil

  • That is a mistake we sold off some roads in Ontario to the private scectar and the cost go on them is very high. Private companies who manage snow removal do a much poorer job at a higher net cost to the taxpayer. a better solution is to pay a fair wage about $20.00 u.s. or $26.60 cd for top operators and tradesman and $14.00 us for adult helpers and summer students $7.00 to $11.00 per hour in Canada or the U.S. The unions and the goverment need to work together to run things better. There are some good private companies but too many are more interested in as bigger profit than doing a good job.

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