brazil approves bankruptcy reform a major reform of brazil s bankruptcy laws has been approved by the country s congress  in a move which it is hoped will cut the cost of borrowing.  the bill  proposed in 1993  has finally been approved by the leadership of president luiz inacio lula da silva. the old law  dating from 1945  gave priority first to workers  second to tax revenue and finally to creditors. the new legislation changes this  giving priority to creditors and limiting payments to workers. the new regulations will limit payments to workers to 150 times the minimum monthly salary  which is currently $94. the law also makes it more difficult for a company to declare bankruptcy. however  when a firm is declared bankrupt it will gain protection from creditors for 180 days while a recovery plan is worked out.  the proposals were opposed in the past by leftist parties  including mr lula s worker party. they considered that they undermined workers  rights. but president lula became a defender of the reforms  arguing that the country s bank lending margins were among the highest in the world and were damaging the economy. according to andreas adriano of latin trade magazine  the new bankruptcy law will help in reducing the spread - difference between the interest rates of the banks and federal bonds. nevertheless  mr adriano said to reduce the basic interest rate the central bank needs to change its policy  focusing not only on inflation but also on economic growth.