RS finances half a billion dollars to pay court orders

The National Treasury Secretariat (STN) gave the green light for the Pró-Sustentabilidade credit operation, a loan articulated by the State of Rio Grande do Sul with the Inter-American Development Bank (IDB). This financing, worth US$500 million, aims to strengthen public coffers, allowing the payment of the stock of court orders. In an official statement sent to the Finance Secretariat (Sefaz) last Wednesday (10/31), the STN, through the Subsecretariat for Intergovernmental Financial Relations, stated that the state meets the necessary requirements for contracting the loan, thus obtaining the Union guarantee.

The next stage involves analysis by the National Treasury Attorney General’s Office (PGFN), which will examine the legal and legal aspects of the financing. After completion of this phase, the request will go to the Senate for approval. Sefaz expects the operation to be completed in the coming months, marking another step forward in the fiscal adjustment process promoted by the Rio Grande do Sul government.

The US$500 million from the international loan will be used to pay court orders through direct administrative agreements. As stipulated by the Tax Recovery Regime (RRF) agreement, the precatório liability must be settled by the State by 2029.

Pricilla Santana, head of Sefaz, highlighted that the release of financing represents a crucial step in the government’s effort to resolve precatório liabilities in an efficient and sustainable manner. Santana highlighted that, after balancing the State’s finances with structural reforms and adherence to the RRF, the government seeks to implement a simplified payment system for these debts through resources from Pró-Sustentabilidade, an innovative credit operation with a multilateral financial institution .

With information from the State Government of RS.