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Brazil Stock Exchange Plummets Following Presidential Bribery Scandal

By: Sabrina Martín - @SabrinaMartinR - May 19, 2017, 12:43 pm
The country’s stock exchange registered its worst fall since 2011 this Thursday, May 18, dipping more than 10 percent. (Feed noticias)

EspañolThe Brazilian Stock Exchange went into “free fall” after audio leaked of President Michel Temer negotiating the payment of a bribe of a major former official.

The country’s stock exchange registered its worst fall since 2011 this Thursday, May 18, dipping more than 10 percent.

Faced with this critical situation, the exchange’s operations were momentarily suspended to protect against further losses. By that time, the shares of state-run oil company Petrobras had already dropped by 20 percent. Bradesco’s fell by 17.6 percent, Itau Unibanco’s by 19 percent, Vale’s by 10.4 percent and the Brazilian Bank’s by 24.6 percent.

 

President Temer is being accused of approving the bribe of a witness in the “Lava Jato” case involving a network of corruption and bribes involving Petrobras.

The newspaper O Globo reported that the owners of the company JBS showed audio recordings and videos to judicial authorities, in which the president can be heard approving of bribes to former President of the Chamber of Deputies Eduardo Cunha in order to ensure his silence.

Sources: El Economista; La Nación

Sabrina Martín Sabrina Martín

Sabrina Martín is a Venezuelan journalist, commentator, and editor based in Valencia with experience in corporate communication. Follow @SabrinaMartinR.