The Brazilian Congress on Tuesday night completed action on a bill allowing for a stretch-out of debts owed by state governments to federal agencies. The bill provides for stretch-outs as long as 20 years with grace periods for some of the debts in the first year. Congress eliminated provisions for austerity policies by the states as part of the debt stretch-out negotiations. President Michel Temer had pushed for the austerity provisions. News reports said the president may veto the bill. Several Brazilian states have declared fiscal “emergencies” because of declining revenues and rising costs in the face of a two-year recession.
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