Governors of the South and Southeast have a meeting scheduled with Minister Fernando Haddad this Tuesday (26) in Brasília to discuss the states’ debts with the Union. The agenda of the South and Southeast Integration Consortium (COSUD) is the change in the methodology of calculation of the Monetary Update Coefficient (CAM), which is currently used by the federal government.
Continues after advertising
Receive news from Santa Catarina via WhatsApp
Governor Jorginho Mello (PL) will not be present. He will be represented by vice-governor Marilisa Boehm and Secretary of Finance, Cleverson Siewert.
The discussion is to try to convince the federal government to recalculate billion-dollar values, which weigh on the states’ accounts. It turns out that, over the years, the correction multiplied debts. Santa Catarina, for example – a state recognized as a good payer – took out loans worth R$5.42 billion from the Union. It paid R$16.5 billion until the last month of December and still closed the third quarter of 2023 with a debt of R$ 10.98 billion.
Until 2013, public debt was calculated using the IGP-DI index, plus 6% to 9% – which did not give States the opportunity to amortize amounts. Santa Catarina presented a new calculation proposal and, faced with pressure from the states, the federal government partially gave in and adopted a new indicator, which is the CAM plus 4% per year. The model was considered beneficial by the states, but the indexer became the Selic, which “exploded” in recent years.
Continues after advertising
Rapporteur, Darci de Matos will be in favor of maintaining the deputy’s arrest for Marielle’s death
On March 1st, during a Cosud meeting in Porto Alegre, the issue returned to the states’ agenda. The proposal defended by the South and Southeast is to recalculate, for the period from 2013 to December 2023, the outstanding balances of the contracts and cause the CAM to be calculated according to the monthly variations of the IPCA plus 4% per year and SELIC, applying the lowest result. For comparison purposes, it is worth remembering that in 2023 the SELIC closed at 11.75%, against an IPCA of 4.62%. In this scenario, Santa Catarina would save R$1.3 billion.
For the future period, the proposal is to apply simple interest of 3%, without monetary restatement — which would result in a reduction of R$17 billion in debt service by 2048, considering a total of R$29 billion if the current model is sustained.
The State of Rio Grande do Sul carries out the studies and is responsible for preparing the new proposal, which will be delivered to the Union. Secretary Cleverson Siewert told the column that the dialogue with the Ministry of Finance and trusts that it will be possible to move forward with the agenda during this Tuesday’s negotiations.
Read more:
As in the Marielle case, in SC “trafficking lawyer” wrote a book about money laundering
High tech building in SC will have security made by Artificial Intelligence
SC lawyers represent Bolsonaro and Michelle against Lula for Alvorada furniture
What does the legal thesis that rules out a new election in SC say if Seif is impeached?
