Privatization at Hand for State Bank, Power Company

Global Finance, November 1997 | Go to article overview

Privatization at Hand for State Bank, Power Company


Privatization is moving ahead in Brazil at full speed in a number of industries, and Pernambuco is participating in this trend with plans to sell a state-owned bank and electrical energy distribution company.

"The power distribution company, Celpe, is our most valuable asset," says Eduardo Campos, Pernambuco's secretary of finance. "It is the secondlargest distribution company in Brazil. The state legislature is discussing how to sell 40% of Celpe immediately, either through the sale of shares on the stock exchange or an auction conducted by the National Economic and Social Development Bank (BNDES)." Pernambuco expects to derive at least $1.6 billion from the sale.

With strong interest from foreign and domestic investors in other power privatizations around the country resulting in premium prices for state assets, says Campos, the timing for Pernambuco's sale is good. "Whether or not we sell the rest of Celpe depends on other technical and political factors," he says. "Our own resources of hydroelectric energy are sufficient through the year 2005, but after that we may have to import electricity from other states in the Northeast. We have to make sure that Pernambuco continues to develop the electricity it needs to bring in new industrial investment."

Currently, Celpe distributes power only in Pernambuco, but as Brazil's electrical industry is deregulated it will be able to operate on a regional basis in other states.

The other major asset marked for privatization is Bandepe, Pernambuco's state bank. "We are restructuring the bank to 'sanitize' it," Campos says. "We want to avoid the mistakes that some other states have committed, like leaving the question of pension obligations to employees unresolved. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Privatization at Hand for State Bank, Power Company
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.