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The new privatization law proposed by Foreign Minister, Jose Serra, could resuscitate the heavily indebted and scandal-ridden Brazilian oil company Petrobras (PBR). Currently, under discussion in Congress as Bill 4567, it presents a great opportunity for the Brazilian economy and foreign investors, but it also faces backlash and potential obstacles.
New exploration and production projects vital to the Brazilian economy has been halted because PBR is currently required by law to have a large stake and operation responsibilities in them. PBR lacks the funds to embark them, and foreign investors are deterred by the encumbering cooperation with PBR. The “Brazil: New Government, New Laws, New Hope” report prepared by IMA’s panel of experts offers a comprehensive view of the changes this law would bring about. The report provides a clear overview of what the bill means for both PBT and the Brazilian economy. It outlines key challenges the legislation faces, and examines what important events in the coming months, such as the impeachment trial of President Rousseff, will influence the outcome and timing of Bill 4567.
If you are interested in a copy of the 11 page report, please contact us at nzajicova@IMAstrategy.com