Anti-Coronavirus Bill Allows States to Incur More Debt

The bill was created as a short-term alternative to the so-called Mansueto Plan, which would establish conditions for states and municipalities to incur more debt.

RIO DE JANEIRO, BRAZIL - The emergency rescue bill for the states under discussion in the Chamber of Deputies allows for a ten percent increase in their debt, between R$55 billion (US$11 billion) and R$65 billion in new loans, in addition to the R$565 billion at the end of last year.

The calculations were carried out by the Independent Fiscal Institution (IFI) of the Senate. In addition to suspending the payment of debt installments to the Federal Government and banks, the bill allows governors to borrow up to a limit of eight percent of their revenues.

The . . .

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