Rousseff Out, Temer In

Brazilian Senate has just vote to proceed with the impeachment trial of Dilma Rousseff.

This decision comes with landmark changes. Rousseff will have to step aside for her vice president. 55 to 22 vote, the senate voted to go ahead with the impeachment trial over allegations that Rousseff used creative accounting practices to increase government funding during an election year.

Rousseff will be notified about the senate’s decision by 10 a.m Brazilian time. According to the  Senate President Renan Calheiros, Senate President, “From the moment she receives the notification, the process of impeachment for the crime of responsibility takes effect,”

Pending her trial which will end by September, 75 years old Vice President, Michel Temer will be taking over. Temer has be called desperate by Rousseff supporters who see him as an opportunist playing on the travails of his boss to get into power. He is also under investigation for his role in the corruption scandal that has rocked Petrobras, Brazil’s largest corporation.

Petrobras has already be battered with write downs and losses up to USD 10.2 billion. Rousseff is expected to comply with the development. She will be having access to partial privileges such as salaries, security and perks of office. The probability of her come back has been dismissed by many analysts.

Brazil is also in the middle of a scathing economic crisis. Its credit rating is already in junk status from S&P and Fitch. Moodys’ might follow suite as soon as things go further south.