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Energy and the shame of court orders (Brazil)
Energy and the shame of court orders (Brazil)
This week the Federal Government's decision to delay payments of court orders was highlighted in the news. The justification is to "balance the country's budget".
This type of attitude is very bad for the country as it shows the institutional fragility and lack of respect for contracts.
The consequence is the removal of top-tier investors, who value the correction in the business environment.
The energy sector, which is capital-intensive, will suffer and a lot.
Of course, there will always be investors, even so. But there is a price to pay, which is reflected in tariffs and prices: the country's risk embedded in the financial calculations will be significantly increased.
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