Brazil’s Levy sees no immediate need for Petrobras capital injection

There is no immediate need for a capital injection at Brazilian state-run oil firm Petrobras, Finance Minister Joaquim Levy said on Friday, downplaying media reports about a possible government plan to bolster the capital of the heavily indebted company.

“They have enough cash to run,” Levy told reporters on the sidelines of an infrastructure conference in Half Moon Bay, a coastal town south of San Francisco.

“Of course the government could always act as a major shareholder. But we should not be seeking easy solutions. We have budget constraints,” he added.

Agência Estado news agency on Thursday reported that Brazil’s government is considering transferring hybrid securities to Petroleo Brasileiro SA, as Petrobras is formally known.

Hybrid notes, which combine elements of debt and equity securities, have been used by the government to pump money into state banks since 2009, allowing them to boost lending.
Read more