BRASILIA (Reuters) - Brazil’s state lender Caixa Econômica Federal [CEF.UL] will not be privatized, Caixa chairwoman and Brazil’s Treasury secretary Ana Paula Vescovi told journalists on Thursday.
Vescovi reiterated the bank’s board is discussing to reform Caixa’s bylaws to turn it into an incorporated company, but said that does not mean the government is willing to sell a stake in it. She said Caixa needs additional funds to meet Basel III requirements, which may come from a potential 10-billion-real ($3.05 billion) transfer from a workers’ severance fund known as FGTS.
($1 = 3.2793 reais)
Reporting by Silvio Cascione; editing by Diane Craft