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With Privatization Plan, Brazilians Can Buy Eletrobras Shares Using FGTS Balance; Find Out How!

Written by Daiane Souza
Published on 01/06/2022 at 11:31
Updated on 01/06/2022 at 11:32
Com plano de privatização, brasileiros podem comprar ações da Eletrobras usando saldo do FGTS; saiba como! - Pixabay
Com plano de privatização, brasileiros podem comprar ações da Eletrobras usando saldo do FGTS; saiba como! – Pixabay
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During the last Friday (27), the launch of the Eletrobras stock offers took place. This way, Brazilians could purchase shares of the institution through the FGTS app (Fundo de Garantia do Tempo de Serviço) using the balance they have in the institution.

Brazilians with an active or inactive account in the FGTS app can now launch Mutual Funds for Privatization (FMPs) with the available balance to buy shares of Eletrobras, which has been raising debates for years about the possibility of privatization to boost the economy and increase market competition.

According to what was announced by the Caixa Econômica Federal do Brasil, the reservations for the stocks will open for online requests starting on June 3rd, and it is expected that the maximum deadline for this will be June 8th. It is worth noting that reservations can be made through any institution as long as it is authorized by the Central Bank of Brazil. It is known, so far, that the worker can use at least 50% of their balance for the reservation and that the minimum amount to be invested for the purchase of a portion of the state-owned company is around R$ 200.

Operational Manual for FGTS Application in Mutual Funds for Privatization at Eletrobras

Through the folder named “FGTS Manuals and Operational Guidelines,” citizens can read and access all the material about the use of the Fund for Guarantee of Time of Service to purchase shares of the state-owned Eletrobras.

The final choice for buying the shares can be made with any operator that is authorized to deal with FMP-FGTS. However, before using accounts from other banks and brokers for the purchase, it is important that the citizen logs into the FGTS app and allows the purchase to be made through other channels. Therefore, authorizing another institution to view their linked balance to make the indicated reservations.

The worker also has the option to go to Caixa branches to check the amount they have available and then invest.

Any questions about the topic can be addressed through the number 4004-0104, for capitals and metropolitan regions, and by 0800 104 0104, in other regions.

Stocks and Company History

Since 2021, privatization has been part of the plans of the government of Jair Bolsonaro. The state-owned company is currently one of the largest energy producers in all of Brazil. According to what was announced by the president of the Republic, privatization would have a positive effect on the economy by increasing competition and bringing more money into public coffers.

YouTube video
Video from the TC channel that discusses more about the history of Eletrobras, one of the largest Brazilian state-owned companies.

Centrais Elétricas Brasileiras S.A. (Eletrobras) was created in 1954 during the government of Getúlio Vargas, who developed several other state-owned companies, including Petrobras. Its creation led Brazil to begin developing an urban population, thus causing rural exodus to work in large cities.

The project to create Eletrobras took seven years to be approved by the National Congress and, during 1990, the state-owned company was negatively impacted after the government implemented reforms aimed at privatization. Now, more conservative groups support privatization, but the opposition to the Bolsonaro government has been against such an act.

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