MercoPress. South Atlantic News Agency
Rousseff admits a government bailout of indebted Petrobras is a serious option
The government isn’t ruling out “evaluating” a bailout if oil prices remain weak, Ms. Rousseff said to reporters at the presidential palace Brazilian President Dilma Rousseff admitted that a government bailout for the country’s troubled state-controlled oil company Petrobras can’t be ruled out. The company is mired in financial troubles amid a deep decline of global oil prices and a sprawling corruption scandal involving several of its former executives and its largest suppliers.
The government, meanwhile, is struggling with a widening budget gap, a 4% economic contraction and double-digit inflation, severely restricting its capacity to use taxpayer money to help Petrobras.
However, the government isn’t ruling out “evaluating” a bailout if oil prices remain weak, Ms. Rousseff said to reporters at the presidential palace, according to recordings made available by the administration.
The company had a debt of more than 506 billion Brazilian reais ($124.9 billion) at the end of the third quarter. Petrobras might need help from Brazil’s Treasury if it fails to sell by the end of this year the $15 billion in assets it has targeted, a difficult goal given low oil prices and other factors.
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Read all commentsWho does this stupid woman think she is fooling?
Jan 18th, 2016 - 11:32 am 0The only way DumbAss Dilma can nationalise Petrobras is when it's stock market value falls to near zero and that is very likely very soon.
PBR used an avg price for oil of U$45 and a Rial at 4.05 for their cash flow.
Jan 18th, 2016 - 01:03 pm 0Wht do you think that cash flow looks like at $20 oil and a 6 rial.
Ooops.
She's in white. “Look at how honest and virginal I am”.
Jan 18th, 2016 - 03:08 pm 0Commenting for this story is now closed.
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