Venezuela’s opposition-controlled congress on Friday rejected an economic emergency decree proposed by President Nicolás Maduro to confront the deepest recession in the country’s history, the first time the body has moved against the government in 17 years of populist rule, The Wall Street Journal reported. The opposition legislators said that Mr. Maduro’s decree was vague and was designed to put more power into his hands without addressing Venezuela’s calamitous economy, which the International Monetary Fund says will contract by 8% this year.

Brazil's Mines and Energy Ministry said on Friday it held talks this month with various investors in the transmission line and wind sectors to feel out potential interest in taking over local projects abandoned by Spain's financially distressed Abengoa SA, Reuters reported. The ministry told Reuters it had met with executives from local and international energy firms including Spain's Cymimasa and Elecnor, China State Grid and Brazil's Engevix and Alupar. It also met with wind investors from Italy's Enel Green Power and local firm Casa dos Ventos.

The plunge in the price of oil is causing more investors to bet that Venezuela will default on its $120 billion pile of foreign debt, an event that would trigger a messy battle over the country’s oil shipments and deepen its economic and political crisis, The Wall Street Journal reported. Despite Venezuela’s worst economic slump since independence from Spain, the socialist government has continued to pay bondholders on time. President Nicolás Maduro this week reiterated the country’s intention to honor its debt. Few investors doubt Venezuela’s willingness to pay.

Emerging market borrowing costs hit their highest level in five years on Wednesday with investors warning that the developing world faces a debilitating credit crunch, the Financial Times reported. Selling pressure is being fanned by weakening local currencies, leaving borrowers of dollar-denominated debt, including Brazil and South Africa, facing sharply higher interest costs. Amid a wider slide in global stock prices, investor flight from Asia, the Middle East and Latin America led one investor to dub the day “Black Wednesday” for emerging markets.

Power companies with wind-generation capacity could take over transmission line projects in Brazil operated by Abengoa SA after the Spanish construction group's insolvency filing halted work on the systems, Reuters reported. Candidates include groups like Renova Energia SA and CPFL Renovaveis SA that would lose revenue if the transmission lines go unfinished or remain inactive, three specialists with knowledge of the discussions said on Monday. Any proposal to take over Abengoa's rights would require approval from Brazil's electrical power regulator Aneel.

Brazilian mining giant Vale SA on Tuesday said it would borrow $3 billion in emergency financing, a sign of distress from the world’s largest iron-ore producer, The Wall Street Journal reported. Vale said the revolving credit line would “increase liquidity and bridge potential cash flow needs.” It didn’t disclose the interest rate it received and said another $2 billion was available. The miner, which needs capital to pay for expansion projects, is tapping the line of credit partly because it hasn’t been able to garner as much as expected through the sale of assets.

Pack away the nipple tassels and dismantle the floats: carnival has been cancelled, the Financial Times reported. Towns and cities across Brazil are being forced to scrap the annual carnival parade as the country is braced for what is expected to be the worst recession since at least the 1930s. The traditional five-day celebration, set for early February this year, normally offers respite from Brazil’s troubles — even the 2008 global financial crisis failed to damp spirits and spending.

Brazil’s government yesterday said that it repaid $14 billion advanced to it by state-controlled institutions, effectively erasing controversial public financing operations that are at the heart of impeachment proceedings pending against President Dilma Rousseff, the Wall Street Journal reported today. The move, observers say, could take some political pressure off Rousseff and her administration, which have been accused by her opponents of using the operations to hide the severity of the country’s widening budget gap.

Brazil’s government has settled overdue payments to state-run banks stemming mostly from budget maneuvers this year and last, which are the basis for impeachment proceedings against President Dilma Rousseff, Bloomberg News reported today. The Treasury this year paid 72.4 billion reais ($18.2 billion) it owed state banks such as Banco do Brasil, it said today. The amount is included in the 120 billion-real primary budget deficit before interest payments authorized by Congress this month.

Holdout creditors are demanding information from HSBC Holdings Plc about Argentina’s effort to raise cash, as the government seeks to end a 14-year standoff that has kept the nation out of international credit markets, Bloomberg News reported yesterday. The creditors last week served HSBC with a subpoena for documents on the bank’s involvement in the country’s attempt to raise money abroad.