By Rogerio Jelmayer

SÃO PAULO -- Brazilian President Michel Temer will veto a bill that would have offered relief to indebted states, a spokesman for his chief of staff said Wednesday.

Brazil's Congress last week approved the bill, which would have eased repayment conditions for states' debts with the federal government. But lawmakers removed some austerity measures from the bill that the central government wanted to impose on states accepting the deal.

Mr. Temer plans to negotiate early next year a new bill that would include some of the measures that were cut, the spokesman said.

Write to Rogerio Jelmayer at

(END) Dow Jones Newswires

December 28, 2016 10:06 ET (15:06 GMT)

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