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Temer vetoes foreign 100% ownership of Brazilian airlines

Staff Writer |
Brazil's interim President Michel Temer vetoed an article in a new law, which would allow foreign investors to take 100% ownership of Brazilian airlines.

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The article is part of a law seeking to modify areas of the aviation sector, mainly in order to allow the state-owned airport infrastructure firm, Infraero, to restructure its debts.

While Temer has expressed support to open up the country's aviation sector to further foreign investment, he does not support their full ownership. For the moment, the existing 20% limit on foreign ownership remains in place.

The government would draft a new law concerning foreign investment in the sector, and send it to Congress.

Such changes were first proposed by suspended president Dilma Rousseff in March, who suggested raising the ceiling to 49%. However, right-wing opponents in the Chamber of Deputies raised it all the way to 100 percent.

It met resistance in the Senate where a number of senators expressed their rejection of the full ownership clause, delaying a vote on the full law for several months.

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