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Over 350 bills propose allowing companies to breach contracts

Between Congress and state legislatures, at least 350 bills related to breach of contract are waiting to be voted on, an analysis by newspaper O Estado de S.Paulo found. According to the newspaper, around 160 of these bills relate to the suspension of essential payments, including gas, electricity, and internet bills. Other projects touch upon issues such as reducing the interest rate on loans and school tuition discounts.

Experts, however, say the practice could lead to legal uncertainty. Officials at the Central Bank and the Economy Ministry have already expressed concern about the impact of adopting a breach of contract regime. Back in April, Central Bank President Roberto Campos Mello warned that, if it becomes “a habit,” the practice could result in the collapse of the Brazilian economy over the medium- and long-run.

Augusta Saraiva

Augusta is a Brazilian journalism student at Northwestern University

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