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Brazilian gov't admits 790 mln U.S. dollars of debt to public banks

Xinhua, July 13, 2016 Adjust font size:

The Brazilian government admitted its debt of 2.6 billion reais (790 million U.S. dollars) to public banks on Tuesday and promised to pay it back after the approval of certain projects by Congress.

The government was hopeful of paying this debt off in 2016, Finance Minister Henrique Meirelles said at a press conference, taking account of the planned fiscal deficit of 170 billion reais (51.5 billion dollars) for this year.

However, various projects currently being debated by Congress would carry fiscal obligation for the government if passed, causing a delay in the payback.

The level of debt to public banks was one of the major motives for impeaching President Dilma Rousseff. She was accused of taking out additional loans from public banks without congressional approval and of delaying repayments to the banks to hide the government's true debt level.

The government owes most of the debt, 1.2 billion reais (364 million dollars), to Caixa Economica Federal, Brazil's second-largest bank. Endi