Brazil Investment Forum - Micro reforms to boost investment Salim Mattar
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Brazil Investment Forum
Micro reforms to boost investment
Salim Mattar
Special Secretary of Privatization and Divestment
Ministry of the Economy
April 3nd, 2019
economia.gov.br
2
Our economy we will be recognized by trust, by
promoting the national interest, the free
market and efficiency. The trust that
agreements and property rights will be
respected.
Inauguration Speech, Jan. 01st, 2019
We will work towards macroeconomic
stability, by respecting contracts, privatizing
and balancing public budgets. Brazil’s
market is still somewhat closed to
international commerce and change this
condition is one of the main commitments
of this government. Jair Messias Bolsonaro
38º President of Brazil
Speech in Davos, Jan 22th, 2019
3
The privatizations in Brazil aim to
battle against corruption and to
boost income and jobs. We keep
following our campaign proposals:
to take out from the Government
everything that can be run by the
private sector
President Bolsonaro, Mar. 19st, 2019
Jair Messias Bolsonaro
38º President of Brazil
4
We will move towards a liberal
democracy. We will open the economy
and we will privatize.
Inauguration Speech, Jan 02th, 2019
Paulo Roberto Nunes Guedes
Minister of the Economy
5
The merger of 4 ministries resulted in...
Industry and Labor Ministry of
Finance Planning Trade the Economy
...the Ministry of the Economy6
Ministry of the Economy
Special Special Secretary
Special Special
Secretary for for De- Secretaria Special
Special Special Secretary Secretary of Secretary for
Productivity, bureaucratization, Especial de Secretary for
Secretary for Privatization the Federal Trade and
Employment Management and Desestatização e Social Security
of Finance and Divestment Revenue International
and Digital Desinvestimento and Labor
Service Affairs
Competitiveness GovernmentGovernment Priorities 7 •Social security reform R$ 1 trillion •Oil transfer of rights •Eletrobras Capitalization • Privatizations • State financial restructuring To federalize regional SOE’s • Infrastructure concessions (PPI) • Deleverage BNDES to privatize the lending market Crowding in • Reduce the debt
8
Domestic Federal Public Debt
R$ 3.8 trillion9 Privatization target for 2019: USD 20 billion
10
Ministry of the
Economy
Special Secretary
for Privatization
and Divestment
Secretary of Coordination and
Governance of State-owned Secretary for Coordination and
Governance of Assets - SPU
Companies - SEST
134 State-owned 743.322 properties
companies11
12
Sale of a large part of the asset portfolio... 13
$
State- Other
SOE’s Listed equity
owned state Properties
subsidiaries investments
companies assets
...to reduce debt14
Assets to reduce the debt
R$ billions
State-owned companies 490
Bank credit (IHCD) 85
BNDES loan 270
Concessions 115
Properties 30
990*
* Figures for illustrative purposes only.Privatization is already happening 15
US$ (million)
• Privatizations 943
Petrobras – Pasadena 562
Petrobras – Paraguay’s Distributors 381
• Divestments 646
Caixa FGEDUC - IRB 646
• Concessions 1.844
12 airports 1.085
Railway North-South 703
4 Ports 57
Total 3.43316
The purpose of selling SOE’s...
3,8
3,7
Domestic Federal Public Debt 3,4
R$ trillion 2,9
2,1
1,9
1,6 1,7
1,5
1,5
1,4
1,2 1,3
1,1
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019*
... is to improve the competitive environment and reduce debt.
Source: BCB Elaboration: SEST/SDD/MEIn 2010, state privatization could have 17
saved more than 60% of our debt ... 3,4
2,9
Value of SOE’s relative to public sector net debt
Public sector net debt (R$ trillion)
2,1
Value of state-owned companies / net debt
1,9
1,6 1,7
1,5 1,5
61% 59% 56% 54% 46% 28% 27%
31%
2010 2011 2012 2013 2014 2015 2016 2017
... and would substantially change its profile.
Source: BCB/SPE Elaboration: SEST/SDD/ME18 Constitution – Art. 173 “Except for the cases provided for in this Constitution, the direct exploitation of economic activity by the State shall only be permitted when necessary to the imperatives of national security or the relevant collective interest, as defined by law.”
19 #State owned companies
20 #State owned companies Brazil 440
21 #State owned companies Brazil 440 Union 134
22 #State owned companies Brazil 440 Union 134 China 51.341
Federal state-owned companies 23
Direct and indirect control
134 Federal
18
Dependent State-owned
46 companies
28 Direct
Control Number of Subsidiaries Group
Non-
dependent 88
Indirect
Control
36 Petrobras
30 Eletrobras
16 Banco do Brasil
Companies under Federal Govt. control
03 BNDES
State-owned companies dependent on the National Treasury 02 Caixa
State-owned companies not dependent on the National Treasury
Non-dependent state enterprises with indirect control of the 01 Correios
Federal Govt.The 18 dependent SOE’s burns a high 24
bill to the taxpayer
R$ 15 billion/year
• EBSERH • CONAB • EBC • VALEC • CEITEC
• EMBRAPA • CBTU • NUCLEP • TRENSURB • EPL
• CONCEIÇÃO • CPRM • INB • IMBEL
• HCPA • CODEVASF • AMAZUL • EPE
Source: SEST/SDD/ME25
From Oct/15 to Dec/17, SOE’s went
from losses to profits
52
In the first nine months of 2018,
25 the BB, BNDES, Caixa, Eletrobras
and Petrobras groups showed a
combined profit of R$ 52 billion.
5
2015 2016 2017 9M18
-32
Source: SEST/SDD/MEState-owned companies that won’t 26
be privatized
• Petrobras • Ebserh
• HCPA
• Banco do Brasil
• GHC
• Caixa Econômica Federal • Embrapa
• BNDES • Amazul
• Emgepron
• CPRM
• ImbelBreakdown by Industry 27
Regional Development 1 Regional Development
Health 3 • Codevasf
Communication 3 Health
Supply 3 • Ebserh
• HCPA
Equity investments 4 • GHC
Transportation 4
Communication
Insurance 5 • ECT
Research, Development and Planning 6 • EBC
• Telebrás
Ports 7
Transformation Industry 7
Commerce and Services 14
Finance 18
Oil and Gas 20
Energy 39
Source: SEST/SDD/ME28
Breakdown by Industry
Regional Development 1
Health 3 Supply
• Conab
Communication 3 • Ceagesp
Supply 3 • Ceasaminas
Equity investments 4
Transportation 4 Equity investments
Insurance 5 • 5283 Participações
• BB Elo Cartões
Research, Development and Planning 6 • Caixapar
Ports 7 • Correiospar
Transformation Industry 7
Commerce and Services 14
Finance 18
Oil and Gas 20
Energy 39
Source: SEST/SDD/ME29
Breakdown by Industry
Regional Development 1
Health 3
Communication 3
Transportation
Supply 3 • CBTU
Equity investments 4 • Trensurb
• Valec
Transportation 4 • Infraero
Insurance 5
Insurance
Research, Development and Planning 6 • ABGF
Ports 7 • BB Corretora
• BB Seguridade
Transformation Industry 7 • BB Seguros
• Caixa Seguridade
Commerce and Services 14
Finance 18
Oil and Gas 20
Energy 39
Source: SEST/SDD/ME30
Breakdown by Industry
Regional Development 1
Health 3
Communication 3 Research, Development and Planning
• Embrapa
Supply 3 • Amazul
Equity investments 4 • EPE
• EPL
Transportation 4 • Emgepron
Insurance 5 • CPRM
Research, Development and Planning 6 Ports
• CDC
Ports 7 • Codesa
Transformation Industry 7 • Codesp
• CDP
Commerce and Services 14 • CDRJ
Finance 18 • Codern
• Codeba
Oil and Gas 20
Energy 39
Source: SEST/SDD/ME31
Breakdown by Industry
Regional Development 1
Transformation Industry
Health 3 • Araucária
Communication 3 • Ceitec
• CMB
Supply 3 • Imbel
Equity investments 4 • INB
• Nuclep
Transportation 4 • Hemobrás
Insurance 5
Research, Development and Planning 6 Commerce and Services
• Ativos Gestão • PCEL
Ports 7 • BB Cartões • PEL
• BB Turismo • PFL
Transformation Industry 7 • BB Tecnologia e Serviços • PIB BV
Commerce and Services 14 • Dataprev • PNBV
• E-Petro • PSPL
Finance 18 • Serpro • TI B.V.
Oil and Gas 20
Energy 39
Source: SEST/SDD/ME32
Breakdown by Industry
Regional Development 1
Health 3
Communication 3
Supply 3
Equity investments 4 Finance
Transportation 4 • Ativos S.A. • BESCVAL
• BAMB • BNB
Insurance 5 • BASA • BNDES
• BB • BNDESPAR
Research, Development and Planning 6
• BB AG • BNDES PLC
Ports 7 • BB Consórcio • Caixa
• BB Investimentos • Emgea
Transformation Industry 7 • BB DTVM • Finep
Commerce and Services 14 • BB LAM • Finame
Finance 18
Oil and Gas 20
Energy 39
Source: SEST/SDD/ME33
Breakdown by Industry
Regional Development 1
Health 3
Communication 3
Supply 3
Equity investments 4
Oil and Gas
Transportation 4 • Petrobras
• Pebis
Insurance 5 • BR
• Pemid
• Bear
Research, Development and Planning 6 • PIB Col
• Brasoil
• PM
• Gaspetro
Ports 7 • PPSA
• Gás Brasiliano GBD
• Transpetro
Transformation Industry 7 • Liquigás
• Stratura Asfaltos
• Logigás
Commerce and Services 14 • TAG
• PAI
• TBG
Finance 18 • PB-Log
• Pbio
Oil and Gas 20
Energy 39
Source: SEST/SDD/ME34
Breakdown by Industry
Regional Development 1
Energy
Health 3 • Eletrobras • EDV VI • Mangue Seco 2
Communication 3 • Arara Azul • EDV VII • Ouro Verde I
• AmGT • EDV VIII • Ouro Verde II
Supply 3 • Bentevi • Eletronorte • Ouro Verde III
• Brasil Ventos • Eletronuclear • Termobahia
Equity investments 4 • •
• Breitener Eletrosul Termomacaé Comercializadora
Transportation 4 • Breitener Jaraqui • Eletropar • Termomacaé
• Breitener Tambaqui • Eólica Chuí IX • TGO
Insurance 5 • BSE • Eólica Hermenegildo I • TSBE
Research, Development and Planning 6 • CGTEE • Eólica Hermenegildo II • TSLE
• CHESF • Eólica Hermenegildo III • Ventos de Angelim
Ports 7 • EDV IX • Fote • Ventos de Santa Rosa
• EDV V • Furnas • Ventos de Uirapuru
Transformation Industry 7
Commerce and Services 14
Finance 18
Oil and Gas 20
Energy 39
Source: SEST/SDD/ME35
Thank you!
economia.gov.brYou can also read
