BRASILIA (Reuters) -Brazil’s Senate has approved a constitutional amendment that will gradually include court-ordered debt payments in fiscal target calculations starting in 2027, easing fiscal pressure ahead of next year’s presidential election.

WHY IT’S IMPORTANT

A Supreme Court waiver allows only part of these payments to count toward Brazil’s fiscal goals, but this exemption expires after 2026.

Without the amendment, which was passed by the Senate late on Tuesday, including the full debt payments would render fiscal targets unfeasible, according to government forecasts.

BY THE NUMBERS

Brazil’s economic team estimates that court-ordered debt payments will exceed 120 billion reais ($22.14 billion) in 2027, but under the new rule only 10% of the total will initially count toward the

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