Brazil Congress approves key financial bill

Reuters, 04.02.03, 5:54 PM ET BRASILIA, Brazil, April 2 (Reuters) - Brazil's lower chamber of Congress approved on Wednesday a bill changing the legal framework of the financial system which could pave the way for Central Bank autonomy, lawmakers said. The approval of the so-called constitutional amendment marked an important political victory for the centre-left government of President Luiz Inacio Lula da Silva as it showed it can mobilize lawmakers on key votes, boding well for key economic reforms. The lower house voted by an impressive margin of 442 lawmakers favoring the bill and 13 against, underscoring the Lula government's capacity in this vote to win large support from its coalition allies and opposition lawmakers. The Senate has already approved the bill. Wednesday's bill allows for changes to the legal framework of Brazil's financial system under the constitution -- a necessary precursor to any legislation giving the Central Bank operational autonomy later on. The government has not detailed when, or what proposals it will make on changing the bank's status, but some analysts say Brazil's Central Bank has one of the least independent institutional frameworks in Latin America.