Brazil Government Settles $18.3 Billion Owed to State Banks
- Move cleans slate, improves chances for budget surplus in 2016
- Payment may undermine arguments to impeach President Rousseff
What's Ahead for Brazil in 2016?
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Brazil’s government is repaying obligations to state-run banks that stem mostly from budget maneuvers that are the basis for impeachment proceedings against the president.
The Treasury this year is paying 72.4 billion reais ($18.3 billion) it owed state banks such as Banco do Brasil, it said in a statement on Wednesday. The bulk of the amount had already been included in the 120 billion-real primary budget deficit authorized by Congress this month. The primary budget excludes payments on interest.