May 17, 2017 / 9:52 PM / in 7 months

Brazil could raise up to $1 billion in debt renegotiation: sources

BRASILIA (Reuters) - The Brazilian government expects to collect between 2 billion and 3 billion reais ($637 million to $955 million) this year from a renegotiation of corporate debts owed to federal agencies and authorities, two government sources told Reuters on Wednesday.

President Michel Temer is likely to issue the presidential decree later this week to start renegotiating the fees and fines following recent efforts aimed at tax debts, the officials said.

The extra income would allow the government to reduce its public spending freeze for this year, the officials said.

In March, the government announced a spending freeze of 42.1 billion reais to meet its primary budget deficit goal of 139 billion reais.

The government also plans to include an extra 4 billion reais in expected revenue from the auction of oil rights later this year, the officials said. The government will reveal its new estimates in its bimonthly fiscal report on Monday.

($1 = 3.14 reais)

Reporting by Marcela Ayres; Writing by Alonso Soto; Editing by Chris Reese and Lisa Shumaker

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