The Americas

Belt-tightening in Brazil aimed at fighting economic crisis

  • Brazil's acting President Michel Temer, left, talks with President of the National Congress Sen. Renan Calheiros, during meeting to deliver to Congress the revision project of the government's fiscal target, in Brasilia, Brazil, Monday, May 23, 2016. Brazil's interim government is under fire after a recording emerged of the planning minister discussing a purported pact to push for President Dilma Rousseff's impeachment to stall a massive corruption probe. (AP Photo/Eraldo Peres)

    Brazil's acting President Michel Temer, left, talks with President of the National Congress Sen. Renan Calheiros, during meeting to deliver to Congress the revision project of the government's fiscal target, in Brasilia, Brazil, Monday, May 23, 2016. Brazil's interim government is under fire after a recording emerged of the planning minister discussing a purported pact to push for President Dilma Rousseff's impeachment to stall a massive corruption probe. (AP Photo/Eraldo Peres)  (The Associated Press)

  • Brazil's acting President Michel Temer, center, holds a meeting on economic measures with party leaders from the Lower House and Senate at Planalto presidential palace in Brasilia, Tuesday, May 24, 2016. Temer announced belt-tightening measures aimed at pulling Latin America’s largest economy from its worst crisis in decades, including taking back billions it loaned Brazil’s state-run investment bank, abolishing a fund created to channel oil revenues into education, sharply cutting public spending and negotiating reforms to the country’s pension system. Temer took over after President Dilma Rousseff was impeached earlier this month for allegedly using accounting tricks in managing the federal budget. (AP Photo/Eraldo Peres)

    Brazil's acting President Michel Temer, center, holds a meeting on economic measures with party leaders from the Lower House and Senate at Planalto presidential palace in Brasilia, Tuesday, May 24, 2016. Temer announced belt-tightening measures aimed at pulling Latin America’s largest economy from its worst crisis in decades, including taking back billions it loaned Brazil’s state-run investment bank, abolishing a fund created to channel oil revenues into education, sharply cutting public spending and negotiating reforms to the country’s pension system. Temer took over after President Dilma Rousseff was impeached earlier this month for allegedly using accounting tricks in managing the federal budget. (AP Photo/Eraldo Peres)  (The Associated Press)

  • Brazil's Finance Minister Henrique Meirelles cups his ears to hear a journalist's question better during a news conference following a meeting on economic measures with Congressional party leaders at Planalto presidential palace in Brasilia, Tuesday, May 24, 2016. Meirelles and acting President Michel Temer announced belt-tightening measures aimed at pulling Latin America’s largest economy from its worst crisis in decades, including taking back billions it loaned Brazil’s state-run investment bank, abolishing a fund created to channel oil revenues into education, sharply cutting public spending and negotiating reforms to the country’s pension system. President Dilma Rousseff was impeached earlier this month for allegedly using accounting tricks in managing the federal budget. (AP Photo/Eraldo Peres)

    Brazil's Finance Minister Henrique Meirelles cups his ears to hear a journalist's question better during a news conference following a meeting on economic measures with Congressional party leaders at Planalto presidential palace in Brasilia, Tuesday, May 24, 2016. Meirelles and acting President Michel Temer announced belt-tightening measures aimed at pulling Latin America’s largest economy from its worst crisis in decades, including taking back billions it loaned Brazil’s state-run investment bank, abolishing a fund created to channel oil revenues into education, sharply cutting public spending and negotiating reforms to the country’s pension system. President Dilma Rousseff was impeached earlier this month for allegedly using accounting tricks in managing the federal budget. (AP Photo/Eraldo Peres)  (The Associated Press)

Brazil's interim President Michel Temer is announcing belt-tightening measures aimed at pulling Latin America's largest economy from its worst crisis in decades.

Temer says the government will take back about $ 28 billion it loaned Brazil's state-run investment bank and abolish a fund created to channel oil revenues into education.

Temer also pledged Tuesday to sharply cut public spending in a bill he's preparing to send to Brazil's Congress. And he's appointing a commission to negotiate reforms to the country's pension system.

Brazil's economy is expected to contract around 3 percent this year after a fall of almost 4 percent in 2015.

Temer took over after President Dilma Rousseff was impeached earlier this month for allegedly using accounting tricks in managing the federal budget.