Brazilian Supreme Court Justice Ricardo Lewandowski on Wednesday issued an injunction effectively halting the country’s privatization program, at least temporarily. The injunction, issued in a suit brought about by unions, prohibits the sale of majority stakes in government-owned companies except by means of specific laws passed by Congress. The order covers all government-owned enterprises, including subsidiaries as well as companies owned by state and municipal governments. The main focus of the government’s privatization program, at present, is government-run utilities holding company Eletrobras. The government was hoping to raise more than R$12 billion by selling a majority stake in Eletrobras. The government can appeal the injunction to the full Supreme Court.
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