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Debt Relief and Austerity Measures of Brazilian States Approved at Congress

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External of Brazilian Nacional Congress

Brazil’s lower house of Congress on Tuesday approved the main text of a bill granting debt relief to cash-strapped states that adopt belt-tightening measures, in a victory for President Michel Temer’s austerity program.

In a late night vote of 301 to 127, lawmakers approved the bill that allows states to ask for a three-year suspension of their debt with the federal government if they freeze wages, increase pension contributions and sell assets.

Votes on proposed amendments to the bill were scheduled for Wednesday.