Short of Cash, Brazil Plans a Massive Privatization to Raise US$ 28 Billion

With Brazil’s budget deficit calculated at reaching almost US$ 50 billion, president Michel Temer and his administration are preparing a privatization package that could net US$ 28 billion by the end of 2018.

The package, which has been elaborated by the federal government’s infrastructure team, according to Poder360, includes the privatization of airports, oil blocks, hydropower plants and other strategic, government-owned entities.

If sales reach the government’s estimations, it will collect a total of almost US$ 9 billion by the end of 2017 and US$ 19 billion by the end of 2018, according to Brasil 24/7.

However, the deals will not be easily finalized as companies that receive government grants are returning their assets to the state.

Triunfo and UTC construction companies are good examples. Unable to pay their debts, they’ve surrendered operations over Viracopos Airport in Campinas, in the state of São Paulo.

The multi-billion dollar privatization package comes amid a host of austerity measures implemented or proposed by president Temer who has a less than a 5 percent approval rating.

A regressive labor reform bill had been passed in July. It radically altered more than a hundred clauses in Brazil’s Consolidated Labor Law which was first introduced in 1943 by President Getúlio Vargas.

While Temer’s vision of new labor laws radically increases work hours while drastically decreasing worker’s rights, his proposal for pension reform would scrap the average retirement age of 54, making it mandatory that women retire at 62 and men at 65.

His administration has also approved a 20-year freeze on all public spending.

Unprotected Borders

Budget cuts imposed on the Armed Forces by Michel Temer’s administration left Brazil’s borders unprotected, warned the Brasil 24/7 publication.

As a consequence of the lack of resources, it was necessary to interrupt the implementation of the Integrated Border Monitoring System (SISFRON), assisting in the control of the illegal entry of weapons and drugs into the country, 24/7 said.

SISFRON was established in 2012 and should be completed by 2022. But it only covered 600 of the 17,000 kilometers of borders.

According to the Armed Forces, the system suffered a freeze of over a third of the budgetary resources foreseen for this year, which should be in the order of R$ 427 million (over US$ 130 million).

High-military commanders warned that the annual budget cut provided by Temer government puts Brazil Armed Forces at risk of collapsing.

According to the Armed Forces, the 40 percent decrease in resources available for this year is only enough to cover expenses until September, the source said.

teleSUR

Tags:

You May Also Like

Speculators Are Not Welcome, Says Brazil’s Lula

Brazilian President Luiz Inácio Lula da Silva once again came out in defense of ...

Favela residents protest against violence

Rio’s Favela Residents Go to Copacabana Beach to Denounce Violence and Authorities’ Neglect

Hundreds of favela residents have rallied on Rio de Janeiro’s world-famous Copacabana beach, weary ...

A still from a FUNAI video of The Man of the Hole, filmed during a government monitoring mission

Brazil’s Man of the Hole Is Dead. The Last Survivor of His Tribe’s Genocide

An Indigenous man known as “The Man of the Hole” has died in Brazil. ...

Guaraná fruit. From gene sequencing to chocolate, Brazil's Amazon looks for a new development model

Brazil’s Amazon Needs New Development Model With Less Cattle and Soy and More Use of Biodiversity

President Jair Bolsonaro’s push to develop the Amazon through expanded mining and farming has ...

Protesters burn buildings and fight the police in Brasília - José Cruz/ABr

Responding to Pressure, Brazil President Removes Army from Capital

Brazilian President Michel Temer has called troops back off the streets of Brasília following ...

President Jair Bolsonaro with military brass

Brazil President’s Courtship with a Coup Leads to Mass Resignation of Armed Forces Heads

Brazil’s President Jair Bolsonaro Tuesday accepted the resignations of the current heads of the ...

Getting a Piece of Brazil

Business Getting a Piece of Brazil There is an expression “Who doesn’t register is ...

From the film Onã, CRUA (Coletivo de Rua)

Brazil’s Genocide Project for Blacks: 70% of Those Murdered Are Black

African-descendants in Brazil are 23.5 percent more likely to be killed than any other ...