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Weekly Report - 08 November 2012 (WR-12-44)

BRAZIL: The royalties war erupts again

Sérgio Cabral, the state governor of Rio de Janeiro, warned this week that there would be “no Olympics” if a newly approved congressional framework law on oil royalties becomes law. Cabral declared that the new legislation “makes unviable the [2014 World] Cup, the Olympics, pension payments and debt”. “It is absolutely unviable. It is the bankrupting of the state”, he declared.

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