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Bolsonaro signs into law $11.3 billion aid to states and municipalities - Metro US

Bolsonaro signs into law $11.3 billion aid to states and municipalities

FILE PHOTO: FILE PHOTO: Brazil's President Jair Bolsonaro speaks with journalists as he arrives at Alvorada Palace, amid the coronavirus disease (COVID-19) outbreak, in Brasilia

SAO PAULO (Reuters) – Brazilian President Jair Bolsonaro has signed into law 60-billion-real ($11.3 billion) of federal government aid to states and municipalities affected by the coronavirus pandemic, but vetoed a section on public servants’ wages, according to an official gazette publication on Thursday.

The freeze on civil servants’ salaries was the counterpart negotiated by the economic team during the discussion of the bill.

Besides the transfer of 60 billion reais for four months, the bill also addresses the suspension of debt payments between states, municipalities and the federal government, as well as credit restructuring operations amid the state of emergency decree triggered by the pandemic.

According to the bill signed into law, only healthcare and social assistance professionals involved in the fight against COVID-19, the disease caused by the new coronavirus, will have salaries raised throughout the end of 2021.

The proposal approved by Congress also included other public servants and military, but Bolsonaro vetoed this section.

(Reporting by Eduardo Simoes; Writing by Gabriela Mello; Editing by Bernadette Baum)

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