Vice of MG and six governors pressure Haddad to renegotiate debts with the Union

Vice of MG and six governors pressure Haddad to renegotiate debts with the Union
Vice of MG and six governors pressure Haddad to renegotiate debts with the Union
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Governors of the seven states in the South and Southeast are putting pressure on Minister Fernando Haddad (PT) to renegotiate the billion-dollar debts with the Union, which have been accumulating for decades and affect internal investments. After a meeting this Wednesday (8), at the Ministry of Finance, the acting governor of Minas Gerais, Mateus Simões (Novo), indicated that, during the meeting, Haddad was willing to move forward in negotiations on the payment of debts.

“We are inaugurating a moment of negotiation with the Federal Government in order to resolve a historical debt problem that, in our opinion, is, today, 15% higher than it should be. This is due to a way of calculating interest currently in practice,” he stated. “The minister committed to starting, in the first quarter of 2024, a series of technical agendas so that we can also move forward with the future review of interest rates charged by the Union with the States. This would bring relief, including in the context of our fiscal recovery plan,” he added.

The plan to join the Fiscal Recovery Regime is being processed in the Legislative Assembly of Minas Gerais (ALMG) to guarantee the renegotiation of the R$ 160 billion debt contracted with the Union. Criticized by the opposition, the RRF is treated as the only possible option by the government state, to pay off the debt. The management of Romeu Zema (Novo) is also analyzing the possibility of transferring the Minas Gerais Economic Development Company (Codemig) to the Union in order to reduce public debt. “We have already sent a letter to the Federal Government in recent weeks, precisely so that we can move towards the federalization of Codemig”, stated Simões.

Regarding the renegotiation of states’ debts with the Federation, he pointed out that governors want a change in the parameters for updating public debts. “Today, debts have grown more than the economy of the states themselves, increasing the representation of debt in our budgets. This compresses our investment capacity and often makes it impossible for us to continue with important investments, such as infrastructure”, he indicated.

In addition to Mateus Simões from Minas Gerais, governors Eduardo Leite (PSDB), from Rio Grande do Sul, Ratinho Jr. (PSD), from Paraná, Jorginho Mello (PL), from Santa Catarina, Claudio Castro (PL), from Rio de Janeiro, Tarcísio de Freitas (Republicans), from São Paulo, and Renato Casagrande (PSB), from Espírito Santos.


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The article is in Portuguese

Brazil

Tags: Vice governors pressure Haddad renegotiate debts Union

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