Caixa Econômica Federal has published the rules so that workers can use up to 50% of FGTS (Service Time Guarantee Fund) In buying stock in EletrobrasIn the case of privatization. The state-owned electric power company is at the head of the government’s privatization line Jair Bolsonaro, with the post office.
In a note to UOLThe Economy Ministry reports that with Caixa publishing the rules, the requirements for using FGTS resources to buy shares are “already disciplined.” In practice, no additional authorizations from Congress or the FGTS Board of Trustees would be required.
In October 2021, the CPPI Board has already approved Eletrobras Privatization Model. In it, it is expected that about 23 billion Brazilian reals of the company’s shares will be put up for sale. Workers may use up to 50% of the balance of each linked FGTS account to purchase such shares. However, the 50% account is subject to certain rules (see below).
CPPI has established that up to R$6 billion of the total balance of FGTS can be used to purchase Eletrobras shares.
The papers will be obtained by the workers through the FGTS-linked Privatization Mutual Funds (FMP-FGTS). Thus, the resources of the FGTS workers can be used to buy shares in these funds, which in turn will use the funds to acquire shares on behalf of the investors.
The rules for this were detailed in a publication published by Caixa in the Official Gazette last Monday (10).
What are funds?
Privatization Mutual Funds, Caixa registered in the publication, “are formed in the form of open condominiums, in which exclusively individuals who own accounts linked to the FGTS participate.”
It will be formed by the sum of the resources allocated to the acquisition of shares within the framework of the national privatization program or similar state programs.
This is not the first time that the government has opened up the possibility for Brazilians to use part of the FGTS’ resources to acquire state-owned shares, in the midst of privatization efforts. In 2000, workers were able to purchase paper from Petrobras With part of the fund, and in 2002, to acquire shares in the mining company Vale.
Jair Bolsonaro’s government plans to privatize state-owned companies in 2022, his final year in government. At the end of 2021 the Minister of Economy, Paulo Geddes, stated that the intent is Selling two state-owned companies For private initiative: Eletrobras and Correios.
According to Caixa, workers can invest a portion of the FGTS directly in these mutual funds, or through investment clubs. Investment clubs will also pool resources for people with FGTS accounts.
How will the requests be?
A worker with FGTS credit may apply up to 50% of the value of each associated account in FMP Shares. However, when calculating the maximum amount to be invested, amounts previously invested in other mutual funds, such as those associated with Petrobras and Vale, will be deducted.
In other words, a worker who still has FGTS resources invested in Petrobras and Vale shares will be able to invest slightly smaller amounts in Eletrobras securities.
The minimum investment amount of FGTS resources in the purchase of Eletrobras shares will be R$200, as determined by the CPPI.
To apply, the worker must give permission to the FMP administrator of his or her choice.
In the FGTS application, the worker can refer to the available credit for the application in the FMP. In addition, you can request a deduction of part of the balance of the FGTS account for investing in a mutual fund.
If the worker decides to sell the shares – that is, the procedures- In the future, the money will go back to the FGTS.
Who does not have an FGTS can buy shares?
The Eletrobras privatization rules state that individuals who do not have money in the FGTS will also be able to buy shares in the company, with their own money. In this case, the minimum investment will be R$1,000 and the maximum investment is R$1 million.
When will it be possible to apply resources in actions?
There is no date for that. The privatization of Eletrobras is still in the works, but it is not yet known when or even if the shares will be sold in the final year of the Bolsonaro government. For some analysts, Only in 2023 It would be possible to privatize the company. In the 2022 budget, privatization is not expected.
The TCU (Union of Reviewers) is analyzing the proposal, but there is resistance in the body regarding the process.
Thus, Caixa’s publication of stock purchase rules paves the way for that, if the company’s shares are already for sale, the FGTS can be used.
In a note to UOLCaixa clarified that the 1990 law already provided that 50% of the FGTS balance could be used for investments in FMP. The circular published last Monday (10) sought to update the rules for the use of resources, “in particular, with regard to providing the worker’s mandate for FMP officials to consult the FGTS balance available to them and implement the application of its resources, taking into account the General Data Protection LawSince 2018, this law regulates the processing of personal data by organizations in general.
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