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Bolsonaro rejects bank check bill, approves FGTS credit legislation

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Bolsonaro rejects bank check bill, approves FGTS credit legislation

President Jair Bolsonaro on Jan. 11 vetoed a bill aimed to define the circumstances in which businesses can reject payments made by check, according to the country's Official Gazette.

The bill, which Brazil's Congress approved in December 2018, specified conditions in which businesses could reject checks, for instance if the payer had a history of poor credit or if the person was not the principal account owner, according to a report by Diário Comércio Indústria & Serviços.

But in the presidential notice vetoing the bill, Bolsonaro alleged that the proposal could negatively impact overall revenue, potentially putting commercial activity at risk.

The move comes after the president sanctioned legislation that will — among other things — prohibit credit institutions from conducting financing operations or granting interest and fine exemptions through the FGTS, a national fund of employee savings with some 500 billion reais in assets, to companies with outstanding FGTS debts.