January 8, 2019 / 4:18 PM / 6 months ago

CEO of Brazil's BNDES says sales of stakes tied to market impact

The new Brazilian National Development Bank (BNDES) President Joaquim Levy attends a swearing-in ceremony in Rio de Janeiro, Brazil, January 8, 2019. REUTERS/Sergio Moraes

RIO DE JANEIRO (Reuters) - The new chief executive officer of Brazil’s state development bank said on Tuesday the pace of sales of stakes owned by its investment arm in Brazilian companies will depend on prices and the market impact of the transactions.

BNDESPar owns around 80 billion reais ($21.5 billion) in stakes in large Brazilian companies such as meatpacker JBS SA (JBSS3.SA), planemaker Embraer SA (EMBR3.SA) and miner Vale SA (VALE3.SA).

Under the government of former Brazilian President Michel Temer, BNDES executives had yearly targets for divestitures of these stakes.

In a press conference after his swearing-in, BNDES CEO Joaquim Levy also said the development bank has documents in its archives that could provide greater insight into the bank’s lending history in recent years and improve its governance.

Brazilian President Jair Bolsonaro has said he will open BNDES’ “black box” and expose its allegedly corrupt lending practices in building “national champion” companies under the Workers’ Party governments from 2003 to 2016.

The bank has also lent around $1 billion to the governments of Cuba and Venezuela, its former CEO Dyogo Oliveira said.

Reporting by Rodrigo Viga Gaier; Writing by Tatiana Bautzer; Editing by Paul Simao

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