BRASILIA: Brazil's President Dilma Rousseff suffered a major new setback Wednesday when a court ruled that her government's accounting practices were illegal, handing ammunition to opponents threatening impeachment proceedings.

The decision by the Federal Accounts Court or TCU was the latest blow to Rousseff, less than a year into her second term. The court said that her government's accounting practices in 2014, including taking what amounted to unauthorized loans from state-owned banks to make up for budget shortfalls, broke the law.

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