Zema says he is in favor of federalizing state-owned companies after meeting with Lula and Haddad – 03/06/2024 – Market

The governor of Minas Gerais, Romeu Zema (Novo), stated this Wednesday (6) that he is in favor of the federalization of state-owned companies and other measures to resolve the issue of the state’s debt with the Union, but stated that it is up to the economic area of the federal government to analyze the feasibility of the proposal.

“The Ministry of Finance is the creditor, it is the one that will evaluate whether federalization is good for the federal government. I am in favor of any measure that comes to resolve Minas Gerais’ debt. If necessary, we move forward on this issue, the state will not will oppose”, said Zema in an interview with journalists after meeting with President Luiz Inácio Lula da Silva and the Minister of Finance, Fernando Haddad.

Zema, however, stated that a more in-depth analysis of the value of companies was necessary before proceeding with the proposals and also defended that companies should become companies with dispersed capital before federalization, as a way of increasing their value at the end of the process.

Since last year, the possibility of federalizing state assets in Minas Gerais has been discussed, including the companies Copasa, Cemig and Codemig.

The idea would be for state-owned mining companies for sanitation, energy and niobium exploration to be used as a way of paying the state’s debt to the Union, as an alternative to the Tax Recovery Regime.