Article
Mota Advogados/SFME Advogados
With the likely impeachment of the current president of Brazil, supported by a vast majority of the population, we will soon see the replacement of the federal government. This will be an important step towards a return of the political stability, since the current government has long lost credibility from the standpoint of ethics, respect of the voters and public management.
Many foreign investors with medium and long –term vision, have been seeking opportunities generated by the crisis. The momentary devaluation of the Real has mouthwatering projects before unthinkable. Brazilian products and services present attractive prices in foreign currency and the values for obtaining visas for foreigners remained in Reals, thus facilitating access to executives and investors.
The number of merger and acquisitions process are promising, reflecting the prospect of growth and expansion, often avoiding bankruptcy and curt recovery of companies in financial difficulties. Sectors such education and airports have been attracting much interest, with less restriction in the rules for stimulating the airline industry, in particular, authorizing participation of foreign capital in companies of up to 49 % segment (before 20%).
The crisis that hit the oil and gas sector launched by Operação Lava Jato (Car Wash) forced Petrobras to implement drastic changes to moralize and avoid disruption in its operations, such as direct hiring foreign companies to provide services and the implementation of the Petrobras Corruption Program Prevention. As suppliers involved in corruption cases are prevented to supply, manufacturers and service providers before inhibited by the "marked cards game", got more space with the state-owned oil company.
Brazil lives a time of political and economic crisis. It is still, however, globally, one of the largest world powers with an incomparable capacity for growth. We must look to the broad scenario and not isolated. Urgent and necessary changes are taking place in the political arena, which will certainly bring quick economic recovery, driven by a more liberal and balanced management model.
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