1 Min Read
BRASILIA (Reuters) - The Brazilian government is taking longer to finalize a decree that would allow it to intervene in debt-ridden Oi SA (OIBR4.SA) because it could impact other sectors beyond domestic phone carriers, an official familiar with the matter said on Monday.
Although the decree is aimed at phone and broadband service providers, the official said the legal change could also allow for intervention in other infrastructure sectors such as railways, highways and energy.
"A legal change cannot be done only for the telecommunications sector. It has to be more general," said the official, adding that the broader scope is requiring more careful analysis. The official asked not to be named because he was not allowed to speak publicly.
The issue may explain why the decree has not yet been issued after Communications Minister Gilberto Kassab last week promised to finalize it in the following few days.
Reporting by Leonardo Goy; Writing by Alonso Soto; Editing by Bill Rigby