Petrobras Jitters…

Petrobras Jitters…

March 2, 2015

The Petrobras corruption investigation will enter a new phase this week as the Attorney General of the republic will bring forth charges against politicians mentioned as being on the take during the investigation up to now. The list of politicians is vast, the list apparently reaches 39 including a former president of the republic, ex governors and ministers, plus influential members of the senate and congress. Mostly from the governing and coalition parties but some members of the oppositions parties have also been tainted.

Needless to say, the nation’s capital, Brasilia, is in turmoil and basically paralyzed. And to add to this mayhem, President Dilma has apparently lost political backing from her own and the coalition governing parties and will have an extremely difficult task in approving her austerity and fiscal measures that are so badly needed to get the economy in the right track.

The oil sector is at a standstill as the investigation proceeds. Major local and international suppliers are being investigated, working capital credit options, both local and international, have disappeared. Not a pretty sight to say the least.

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