Brazil Government Freezes Rio’s Bank Accounts Due to Debt

By Lise Alves, Senior Contributing Reporter

SÃO PAULO, BRAZIL –Rio de Janeiro’s already critical financial situation suffered another blow on Monday, November 7th, with the news that the federal government was freezing all of the state government’s bank accounts until the R$170 million debt the state has with the Union is paid off. By blocking bank accounts, all revenues coming into the state go directly to the Union, with no money to pay salaries, pension or social programs.

“I'm going to Brasília to negotiate,” said Rio’s governor, Luiz Fernando Pezão on Monday . . .

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