Brazil readies suspension of Rio Grande do Sul debt payments, says source

Brazil's government will announce the suspension of Rio Grande do Sul's debt payments to the federal government until December 31 to support the state heavily hit by rains, a government source said on Tuesday.

According to the source, based on calculations provided by Rio Grande do Sul, the move would give the state an extra 3.5 billion reais ($691.40 million) in spending room. Local newspaper Folha de S.Paulo had previously reported the measure. ($1 = 5.0622 reais)