Brazil's Congress Approves New Fiscal Rules for Debt Payments

Brazil's Senate passed a new rule about how the government will handle paying off debts ordered by courts.

Starting in 2027, these payments will gradually be included in the country's budget calculations.

Without this change, the government's financial goals would be very hard to meet.

In 2027, court-ordered payments are expected to be over 120 billion reais.

Initially, only a small part of this amount, 10%, will count towards the budget.

The full amount will be phased in over ten years.

The new rule is now awaiting publication to become official.