São Paulo announced the signing of a concession contract between the São Paulo State Transport Agency (Artesp) and the Eixo SP concessionaire to operate the PiPa Lot (between Piracicaba and Panorama). With the signing of the contract, Eixo SP takes the largest road network ever tendered in Brazil, with 1,273 kilometres, for a period of 30 years. The winning consortium, under the leadership of Banco Pátria, will make an investment of R$ 14 billion ($ 2.6 billion).
Previ, a pension fund for Banco do Brasil, had a deficit of R$ 23.6 billion ($ 4.3 billion) in the first quarter of 2020. The negative result of 12.39% reflects the crisis generated in the markets by the coronavirus, classified by the institution as ” the biggest crisis of the last century “. The foundation points out that the segment most impacted in the period from January to March was variable income, with a decrease of 26%.
The Confederation of Agriculture (CNA) projects that the Gross Value of Production (VBP) of 2020 will reach R$ 728 billion ($ 132 billion), an increase of 11.8% in relation to last year. The CNA notes that “the difficulties in commercialisation in the face of the coronavirus pandemic (Covid-19) should affect the realisation of the VBP in the sector’s billing in the coming months”.
The maintenance of the “Ba2” rating of Brazil’s sovereign debt by Moody’s, with a stable outlook, is a vote of confidence in the country’s long-term fiscal stability. The risk rating agency’s decision on Friday comes as the Brazilian government’s deficit and debt reach record levels due to the coronavirus crisis and after Fitch and S&P cut the outlook for the country’s rating, from stable to negative.
Minas Gerais electric company closed the first quarter with a loss of R$ 57 million ($ 10 million), compared to a profit of R$ 797 million ($ 145 million) in the same period of 2019. The company controlled by the government of Minas Gerais recorded an operating result measured by earnings before interest of R $ 1.355 billion ( $ 246 million), down 6.6% in the annual comparison.