The Fiscal Council of Telebras endorsed on Tuesday, 07/02, a new application for increase in share capital by the administration> Goal is to balance the accounts of the state in 2012, possibly already affected by budget cuts this year.
Capital increase of state company to cover budget overruns has been the resource used by the government in recent years as a way of helping public companies in the IT and Telecom sectors. The money contributed in Telebras should serve to fund the network being deployed in the National Broadband Plan.
According to a statement filed with the Securities Commission (CVM), the capital increase will be funded through Credit Union in the amount of $ 300 million, which will require the issuance of common shares.
Until last year, the company's paid-up capital was U.S. $ 419 million and now will rise to $ 719, 4 million - resulting in the issuance of common shares.