SAO PAULO, Oct 2 (Reuters) - Brazilian President Dilma Rousseff on Friday barred government delays in repaying banks, ahead of a court decision on such delays last year, which could potentially serve as grounds for her impeachment.
The presidential decree, published in the official gazette, bans government delays of over five days in meeting payments on loans from financial institutions.
The decree comes as Rousseff faces potential impeachment on accusations that she broke the nation’s fiscal responsibility law by systematically delaying repayments to Brazilian lenders for advancing money to pay for social programs such as unemployment insurance.
The delay in repayments resulted in the nation’s fiscal account appearing to be healthier than it was ahead of the 2014 presidential election.
The federal accounts tribunal, known in Portuguese as TCU, is expected to decide next week on whether to reject or approve Rousseff’s handling of the public accounts last year.
The government has denied any irregularities, arguing that it followed the law in its accounting practices.
Reporting by Brazil newsroom; Writing by Asher Levine; Editing by W Simon