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Belt-tightening in Brazil aimed at fighting economic crisis

Belt-tightening in Brazil aimed at fighting economic crisis | iNFOnews.ca
Brazil's acting President Michel Temer, left, talks with President of the National Congress Sen. Renan Calheiros, during meeting to deliver to Congress the revision project of the government's fiscal target, in Brasilia, Brazil, Monday, May 23, 2016. Brazil's interim government is under fire after a recording emerged of the planning minister discussing a purported pact to push for President Dilma Rousseff's impeachment to stall a massive corruption probe. (AP Photo/Eraldo Peres)

RIO DE JANEIRO – Brazil’s interim President Michel Temer is announcing belt-tightening measures aimed at pulling Latin America’s largest economy from its worst crisis in decades.

Temer says the government will take back about $ 28 billion it loaned Brazil’s state-run investment bank and abolish a fund created to channel oil revenues into education.

Temer also pledged Tuesday to sharply cut public spending in a bill he’s preparing to send to Brazil’s Congress. And he’s appointing a commission to negotiate reforms to the country’s pension system.

Brazil’s economy is expected to contract around 3 per cent this year after a fall of almost 4 per cent in 2015.

Temer took over after President Dilma Rousseff was impeached earlier this month for allegedly using accounting tricks in managing the federal budget.

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