By: The Real Agenda –
Rousseff warns that corruption at Petrobras could plunge Brazil into unknown territory.
As we reported yesterday, the scandal surrounding Brazil’s Petrobras could have more serious implications than damaging the reputation of a few politicians and their political parties. In the last 12 months, Petrobras has been used to corrupt public officials in Brazil and the bribery system now threatens with dragging down the Brazilian economy to a point of no return.
Petrobras has lost two-thirds of its value and is now in trouble to make payments related to loans it requested while it experienced bountiful times.
Those loans were made in dollars, which added to the political scandal and the drop in the value of the Brazilian Real, will make it much harder for Petrobras to cover its liabilities.
The situation is so serious that it is already possible to hear voices warning about a possible bailout of the oil giant. But those voices also warn that the amount of money needed to bailout Petrobras could add so much debt to the deficit that a financial rescue could be as harmful to the economy as letting Petrobras default.
Brazilian President Dilma Rousseff said Monday that the “struggle for recovery” of state-owned Petrobras, immersed in a major corruption scandal, is “in progress” and that Brazil’s sovereignty and the future of the country depends on such a recovery< p>”>Rousseff mentioned the delicate situation of Petrobras during a ceremony in which her new education minister, Renato Janine Ribeiro, took office in replacement of Cid Gomes, who resigned last March amid controversy with Congress.
The president cited the Brazilian government’s plans to allocate 75% of ‘pre-salt’ royalties to education. The pre-salt is an enormous hydrocarbon deposits discovered by Petrobras in deep waters of the Atlantic Ocean off the southeastern coast Dilma said that the “recovery” of Petrobras, which may face serious financial problems due to the impact of corruption scandals within it, is “a struggle” both of the government and hers< p>”>”It is a struggle of the Government as muh as my struggle, because that is what interests the Brazilian people,” she said.
< p>”>The head of state also confirmed that, despite spending cuts that her government has decided to apply to supposedly balance public finances, budgets for the Ministry of Education will not be altered.
“I guarantee that the urgent need to promote economic adjustments will not affect the essential and structural programs of the Ministry of Education,” said Rousseff, who recalled that the theme of the second term that began last January 1st is “One Nation Educator” <p>”>The president explained that, based on that slogan was that she chose the new minister of that area, Mrs. Janine Ribeiro, who has dedicated her life to education.
Janine Ribeiro, philosopher 65, is a professor at the University of Sao Paulo (USP) and was a member of the National Council for Scientific and Technological Advice and the Council of the Brazilian Society for the Advancement of Science, among other charges.
Dilma’s announcement about the dire situation in which the country and Petrobras are right now is the first official recognition that the corruption that took place at the oil giant may have consequences beyond what anyone could have envisioned just a year ago.
Luis R. Miranda is an award-winning journalist and the founder and editor-in-chief at The Real Agenda. His career spans over 18 years and almost every form of news media. His articles include subjects such as environmentalism, Agenda 21, climate change, geopolitics, globalisation, health, vaccines, food safety, corporate control of governments, immigration and banking cartels, among others. Luis has worked as a news reporter, on-air personality for Live and Live-to-tape news programs. He has also worked as a script writer, producer and co-producer on broadcast news. Read more about Luis.