Brazil's government intends to revamp its bankruptcy law to assist troubled firms in staying afloat amid the country's crippling economic recession, Reuters reported, citing an anonymous senior member of the government's economic team.

The overhaul includes easing the bankruptcy law to enable heavily indebted companies to dispose of healthy assets without shifting part of the credit risk linked to them.

"The changes would give guarantees and viability to the recovery of these companies by, for example, facilitating the sale of assets," the official said.

The source added that President Michel Temer also plans to unveil new measures in the week of Feb. 6 to boost productivity and reinforce the construction industry. These measures, coupled with other key pension and labor reforms, could increase Brazil's potential growth to up to 4% annually from the current 2% to 2.5% range.

Bankers and lawyers anticipate a record number of bankruptcy filings in Brazil in 2017, according to the newswire.

In January, the IMF lowered its 2017 growth forecast for Brazil by 30 basis points to 0.2%, noting that activity in the country was weaker than expected.