Brazilian federal government freezes accounts of state of Rio de Janeiro

The Federal Government froze the State of Rio de Janeiro's accounts on 7 November 2016 because it has failed to make a US$53 million interest payment to BNDES (Valor, Globo G1). The freeze means the state will be unable to pay its providers until it pays the debt. The State Finance Secretary confirmed the freeze and said it will not interfere with this payment. The government expects the account to become unblocked in three business days. The announcement of the freeze came after Governor Luiz Fernando Pezão announced a group of austerity measures on 4 November 2016, which he insists is necessary for the state to have the liquidity to pay salaries in 2017.