Brazil’s government has raised R$1.06 billion ($252 million) from a sale of shares in state-run Banco do Brasil SA carried out last week via the BNDES national development bank. The share sale had been included in the government’s asset disposal program unveiled last August, and was concluded on Thursday, the government said.
Brazilian state-controlled bank Banco do Brasil SA is planning reforms to better compete with private rivals, after President Jair Bolsonaro quashed an attempt by management to fully privatise it. The plan includes changing employment rules, maintain its dividend payout ratio, and forming partnerships with financial technology and other startups.
India Prime Minister Narendra Modi and Brazil President Jair Bolsonaro agreed to boost trade and investment in defence, mining, biofuel, cybersecurity, food, environment and health. In a joint statement the two leaders expressed confidence that a bilateral trade target of $15 billion could be set for 2022 by both countries.
President Jair Bolsonaro said in his Tweeter account that he authorised Brazil’s entry into the Public Contracting Agreement (PA) of the World Trade Organization (WTO), which includes the United States, China, Japan and European countries. The agreement obliges its members to give equal conditions to foreign and national companies in public tenders in the areas of goods, services and infrastructure.
Brasil President Jair Bolsonaro begins a four-day official visit to India. Trade between both countries during 2018-19 was worth $8.2 billion, including Indian exports of $3.8 billion and imports worth $4.4 million. Estimated 2018 Indian investments in Brazil were at $6 billion and Brazilian investments in India at $1 billion. Bilateral ties were elevated to a strategic partnership in 2006 and the two countries work closely at multilateral forums.
The Bovespa rose as much as 0.8% to a record high of 119,342.140, while the real firmed about 0.2% to the dollar on Thursday after data showed a jump in federal tax collections to a five-year high in 2019, boosted by an increase in the corporate tax take. The data underpins optimism over the economy amid sweeping structural reforms and a rebound in economic growth.
Brazil’s Minister of Mines and Energy, Bento Albuquerque, said in New Delhi that during his trip to Saudi Arabia next July he will begin discussing possible membership to the Organization of Petroleum Exporting Countries (OPEC). Brazil aims to become one of the top five exporters of oil in 10 years, Albuquerque said during an official visit to India where Brazilian oil exports fell 23% in 2019.
Brazil’s economy will slowly regain health this year, buoyed by firmer consumer spending and a boost from privatisations, dispelling fears of the kind of social unrest affecting other Latin American nations, a Reuters poll of economists showed. However, the survey’s projection of 2.1% is well short of the government’s 2.4% view.
Brazil climbed from sixth to fourth among the main foreign investment destinations in the world in 2019, thanks to its program of privatisation of federal companies, according to a report from the United Nations Conference on Trade and Development (Unctad). Brazil received $ 75 billion in foreign investments last year, against $ 60 billion in 2018 (+ 26%) and the trend will continue in 2020 with the privatization of large companies such as Eletrobras and Telebras, the report says.
The Brazilian trade balance registered a negative balance of $816 million in the third week of January, according to data from the Ministry of Economy. The main factor was the decrease in sales of manufactured and semi-manufactured products. Combining the first three weeks, the exported value is $8.85 billion and the imported value is $7.91 billion.