Finance Minister Will Help Rio Negotiate Bank Debts
Listen to the story
Brazil's Finance Minister has said he will help the state of Rio de Janeiro mediate talks with banks about its debts.
According to Rio's governor, the state owes 26 billion reais to financial institutions. This large sum has become a serious problem for the state's finances.
The Finance Minister's role will be to help organise a negotiation between Rio and the banks. A negotiation is a discussion where both sides try to reach an agreement.
Two banks are directly involved. One is BNDES, Brazil's national development bank, which lends money for large projects. The other is Banco do Brasil, one of the country's biggest banks.
Rio's governor raised the issue publicly and asked for federal help. The Finance Ministry has now agreed to support the process.
State debt problems are common in Brazil, where states sometimes need federal support to manage what they owe. Rio has struggled financially in recent years.
It is not yet clear exactly how the negotiation will work or what new terms might be offered. The Finance Ministry has only confirmed that it will help mediate the talks.
The outcome could affect how much money Rio needs to pay each year, and how much freedom the state has to spend on public services.
More details are expected as the negotiation between Rio, the Finance Ministry, and the two banks moves forward.
Vocabulary10 words
- Finance Minister
- the government leader who manages money and the economy
- mediate
- to help two sides talk and agree
- financial institution
- a bank or similar company that manages money
- negotiation
- a discussion to reach an agreement
- agreement
- a decision both sides accept
- BNDES
- Brazil's big bank for development projects
- Banco do Brasil
- one of Brazil's largest banks
- debt
- money that must be paid back
- governor
- the top political leader of a state
- federal
- related to the national government
Quiz
Answer key
1. Help mediate Rio's debt negotiation with banks 2. 26 billion reais 3. BNDES and Banco do Brasil
Fill-in-the-blank listening
Play the audio again and fill in the missing words as you listen.
Brazil's Finance Minister has said he will help the state of Rio de Janeiro _____ talks with banks about its debts.
According to Rio's _____, the state owes 26 billion reais to financial institutions.
The Finance Minister's role will be to help organise a _____ between Rio and the banks.
Two banks are directly involved. One is _____, Brazil's national development bank, which lends money for large projects.
The other is _____, one of the country's biggest banks.
Rio's governor raised the issue publicly and asked for _____ help.
State _____ problems are common in Brazil, where states sometimes need federal support.
It is not yet clear exactly how the negotiation will work or what new terms might be _____.
The outcome could affect how much money Rio needs to pay each year, and how much freedom the state has to spend on public _____.