This week, we cover the plan to give aid to states and cities to cushion the Covid-19 blow. How the use of bots skews online political debate in Brazil. The rising Covid-19 death toll in South America.
The economic relief plan for state administrations, explained
In a 79-1 vote, the Senate approved a BRL 125-billion plan of financial aid for state and municipal governments, aimed at cushioning the economic effects of the coronavirus crisis. The proposal now heads to the lower house, which is expected to hold a vote today. If approved swiftly, the first installment could be paid out on May 15.
Why it matters. State administrations have been on the brink of financial collapse for years — a process that is only being accelerated by Covid-19.
Money, money. The plan encompasses direct money transfers, but also the renegotiation of debts:
- Direct money for free use: BRL 30 billion for states, BRL 20 billion for cities;
- Healthcare and social services: BRL 7 billion for states, BRL 3 billion for cities;
- Suspension and renegotiation of debts with federal banks: BRL 49 billion (varying according to each case);
- Loan renegotiation with international bodies: BRL 10.6 billion;
- Suspension of cities’ social...