BRASILIA (Reuters) - Brazil's Rio de Janeiro state may get a 3-year grace period and 8.5 billion reais ($2.64 billion) in bank loans under a fiscal rescue plan being negotiated with the federal government, financial newspaper Valor Economico said on Thursday.
Finance Minister Henrique Meirelles has said a deal could be announced by the end of this week. It will need to be endorsed by the Supreme Court and the state assembly to take effect.
The Finance Ministry declined to comment.
Spokespeople for the Rio state assembly did not respond to requests for immediate comment.
Rio may also seek to raise the mandatory pension contribution of public servants, the paper said, citing the head of the state legislative assembly, Jorge Picciani.
States such as Rio are struggling to pay salaries for police, doctors and other public servants after a two-year recession.
(Reporting by Silvio Cascione; Editing by Raissa Kasolowsky and Bernadette Baum)