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For a lot of the top of 2021, markets confirmed nice concern with Brazil’s fiscal stability. The principle motive for this misery got here within the form of a constitutional modification invoice permitting the federal authorities to cap its court-ordered debt repayments (precatórios) for this 12 months, liberating up house on the funds and primarily making a mockery of Brazil’s federal spending cap.
Whereas looking for assurances that the precatórios invoice was a one-off, the markets’ fear is that the measure units a harmful precedent and renders spending cap guidelines ineffective.
On the one hand, Economic system Minister Paulo Guedes continues to inform traders…
Entry all of The Brazilian Report
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