Federal Government to Provide Rio with R$6.5 Billion in Loans

The agreement is based on a guarantee for the privatization of the State Water and Sewage Company of Rio de Janeiro (CEDAE) and an anticipation of revenues from oil royalties.

By Jay Forte, Contributing Reporter

RIO DE JANEIRO, BRAZIL - Yesterday (January 26th) the state of Rio de Janeiro signed a term of commitment to receive financial relief from the federal government. To remedy a deficit that should reach R$26,132 billion in 2017, the state will receive the federal guarantee to take out two loans of approximately R$6.5 billion.

Under the agreement, the governor of Rio de Janeiro, Luiz Fernando (Bigfoot) Pezão, pledged to raise the expected revenues for this year by R$1.2 billion. In order for the fiscal recovery to take effect, the . . .

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