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Lower House Speaker Reiterates No Other Option Than Spending Cap Breach

BRAZIL
  • Lower House Speaker Arthur Lira reiterated comments from overnight that Brazil has no option other than breaching the spending cap, highlighting the rule needs adjustments.
  • He added that he believes in a full precatorios payment in 2022, ruling out major changes in the bill in a second voting round despite mounting pressure from opposition parties to reverse votes in favour of the text.
  • He once again emphasized his defense to the income tax reform, currently stalled at the Senate, which according to him would guarantee funds for a permanent social program within the spending cap.
  • Separately, the auction of 5G frequency bands on Thursday generated BRL43b in its first day, becoming the second biggest in Brazil's history lagging only the oil reservoirs auction in 2019. (BBG)

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