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Brazil's Temer plans economic stimulus as survival strategy

Staff Writer |
President Michel Temer, fighting for survival over corruption allegations against him and his government, is planning new measures to jump start a stalled economy, improve his dismal approval ratings and stifle calls for his resignation.

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The stimulus measures, to be unveiled this week, include steps to relieve indebted consumers and also force credit card companies to pay businesses faster than the current 30 days, government sources said.

Temer is gambling the micro-economic measures will counter discontent over his failure to deliver on his promise to recover Latin America's largest economy from a two-year recession.

Brazil's Senate is expected to give final approval on Tuesday to a 20-year spending cap that is the centerpiece of the president's plan to restore fiscal discipline.

But fallout from more corruption allegations in the sweeping probe into kickbacks at state-run oil company Petrobras could complicate passage of pension reforms needed to bring Brazil's budget deficit under control.

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