BRASILIA (Reuters) - Centrais Elétricas Brasileiras SA (ELET3.SA) and Petróleo Brasileiro SA (PETR4.SA) are close to agreeing on a deal to solve a dispute involving 20 billion reais ($5.75 billion) worth of Eletrobras debt, newspaper Valor Econômico said on Friday.
Eletrobras, as the state-controlled power company is known, owes state oil firm Petrobras for fuel supplies used in thermal generation in northern Brazil.
The dispute has been a hurdle for Eletrobras’ privatization, a landmark proposal of President Michel Temer’s administration.
The details of the agreement could be unveiled as soon as Friday following an Eletrobras board meeting, Valor said, citing a source with knowledge of the matter.
Representatives for Petrobras and Eletrobras were not immediately available to comment.
($1 = 3.48 reais)
Reporting by Bruno Federowski; Editing by Steve Orlofsky