State of Minas Gerais declares fiscal crisis

Minas Gerais Governor Fernando Pimentel (PT) issued a decree of financial disaster on 5 December 2016, and called for the state legislative assembly to respond quickly (Folha de S. Paulo, Estado de Minas Gerais). The decree, if approved by the Assembly, would allow for the state of Minas Gerais to be flexible with its Law of Fiscal Responsibility under atypical conditions, allowing the state to not meet its stated fiscal goals. The state government has noted that without approval it will not be able to pay salaries or service its debt. Pimentel, in his message, attributed the situation to international and national economic crises. Minas Gerais became the third Brazilian state in 2016 to issue such a decree, following Rio de Janeiro in early November and Rio Grande do Sul on 22 November.