Brazil BNDES won't finance "mirror" telecoms
Reuters, Wednesday, August 12, 1998 at 12:01
SAO PAULO, Aug 12 (Reuters) - Brazil's national development
bank does not intend to finance the purchases of "mirror"
telephone concessions that will compete with recently
privatized Telebras subsidiaries, BNDES vice-president Jose Pio
Borges said on Wednesday.
"We will not finance the mirror companies," Pio Borges told
reporters after a meeting of Brazil's National Privatization
Council.
The BNDES offered credit to Brazilian companies taking part
in last month's $19 billion sale of Telebras. It has also
financed purchases made by Brazilian and foreign buyers of
other state-owned assets.
Pio Borges said there was a possibility the National
Treasury might provide financial help for companies interested
in buying the mirror concessions.
Under a plan for Brazil's telecommunications sector, the
government will auction four "mirror" concessions to private
groups. The concessions will compete with the three fixed-line
regional units of Telebras and long-distance carrier Embratel.
The government plans to sign the contracts for the "mirror"
concessions by the end of December, and providing there are no
legal challenges, operations would begin in the first half of
1999.
Pio Borges, speaking from his car window after the end of
the meeting, declined to comment further.
Copyright 1998, Reuters News Service |
