Brazil’s Senate Approves Constitutional Amendment

SAO PAULO (Reuters) – Brazil’s Senate on Wednesday approved in a first vote a constitutional amendment to change how the government accounts for court-ordered debt payments starting in 2027, potentially helping it meet fiscal targets once considered unattainable.

Under the approved text, these payments – the result of court rulings against the government – must be gradually included in the fiscal target calculation each year from 2027 onward, starting with at least 10% of the estimated total.

Senators approved the main text in the initial vote on Tuesday evening, with a second round still required before it could become law, as the measure was already cleared by the lower house.

However, Senate President Davi Alcolumbre said the final vote will only take place after Congress returns from recess, which starts later this week and will last through the end of July.