Paula Sambo – Bloomberg Business, 12/16/2015
President Dilma Rousseff’s supporters on the congressional budget committee will introduce an amendment to the 2016 budget bill that would allow the administration to aim for a surplus before interest payments of 0.5 percent of gross domestic product, said Paulo Pimenta, the government’s leader on the committee. Rousseff previously wanted to target a so-called primary surplus of 0.7 percent.
The move, which was said to be opposed by Finance Minister Joaquim Levy, is seen by analysts as a potential trigger to further credit-rating downgrades and possibly even the exit of Levy from Rousseff’s administration. The currency lost 2 percent to 3.9521 per dollar at 9:38 a.m. in Sao Paulo, the largest decline among 31 major currencies tracked by Bloomberg.