February 2, 2018 / 2:42 PM / in 38 minutes

Brazil freezes $2.5 bln in gov't expenses on Eletrobras uncertainty

BRASILIA, Feb 2 (Reuters) - Brazil on Friday froze 8 billion reais ($2.5 billion) worth of government expenses for this year under a revised budget to account for potential delays in a plan to privatize power utility Centrais Elétricas Brasileiras SA .

Policymakers expect to raise 12.2 billion reais with the privatization of Eletrobras, as the power utility is known. The revised budget forecasts a 2018 primary deficit of 154.8 billion reais before interest rate payments, below the deficit target of 159 billion reais, Planning Minister Dyogo Oliveira said in a news conference.

$1 = 3.21 reais Reporting by Marcela Ayres; Writing by Bruno Federowski Editing by Chizu Nomiyama

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