Venezuela considers returning state companies and assets to the private sector
Delcy Rodríguez, interim president, stated in a televised speech that the evaluation of public assets is already well advanced
BY THE X-TRADER NEWS NEWSROOM · REPORTING FROM REVISTA OESTE · 2 MIN
Venezuela may once again transfer part of its assets that are currently under State control to the private sector. According to Revista Oeste, the Venezuelan government is considering transferring these assets to the private sector or returning them to former owners. The announcement was made in a statement on TV, on Thursday, 29, by interim president Delcy Rodríguez.
The measure, according to the same publication, involves goods classified as non-essential and which are under state control. The distinction separates, in theory, what the government considers indispensable from what could leave the public machine.
Delcy Rodríguez ordered an assessment of public assets to identify which assets are included in the process. So far, the facts discovered do not provide a list of these assets or a deadline for the transfer.
According to the interim president, the evaluation process is already well advanced. The statement indicates that the heritage review is an ongoing step, and not just an intention, although the final scope of the measure depends on the outcome of this analysis.
For those who follow emerging economies, the movement draws attention to the direction: reducing the State's presence in non-essential assets is a topic that often appears in debates about fiscal responsibility and the business environment. The central point, however, is the form and speed of the transfer.
Without details about which assets are included in the list, the market tends to treat the announcement as a sign of economic policy, and not as a fait accompli.
What changes for the investor
For those who operate the stock exchange, interest and exchange rates in Brazil, the direct effect tends to be indirect, because nothing in the facts verified points to roles, prices or contracts linked to these goods. The signal, however, matters for those who measure risk in emerging markets: the eventual return of assets to the private sector indicates a change in direction, and investors usually monitor the clarity of the rules, the final list of assets and the schedule. Without this data, any reading about the impact on prices would be speculation.
Automatically translated from Portuguese.
