In a fiscal recovery plan since 2022, Rio Grande do Sul will no longer comply with the plan’s requirements for 30 days, the state’s Fiscal Recovery Regime Supervision Council decided this Tuesday (7). According to the Ministry of Finance, the decision may be extended, if necessary.
The decision was taken unanimously, due to the state of public calamity declared in 336 municipalities. Closed in June 2022, the fiscal recovery regime agreement imposed a series of conditions for the state to refinance the debt with the Union in exchange for fiscal adjustment measures, such as reforms to reduce local spending and privatization.
Before the floods hit the state, governor Eduardo Leite was renegotiating the fiscal recovery regime with the Ministry of Finance.
In addition to suspending the recovery plan, the federal government intends to interrupt, this week, the payment of the Rio Grande do Sul government’s debts to the Union until the end of the year. Earlier, senator Paulo Paim (PT-RS) said he spoke about the matter with minister Fernando Haddad.
“It’s a debt that amounts to around R$92 billion. It’s an unpayable debt […] We won’t pay a penny during this period [até dezembro]by decision and greatness of President Lula and greatness of Brazil, who understood that there is no way for us to pay a percentage of interest and correction of a debt of R$92 billion with the dying people”, declared Paim.
Treasury Attorney’s Office
Also this Tuesday, the Attorney General’s Office of the National Treasury (PGFN) suspended, for 90 days, debt collection and executive actions for debtors residing in the affected municipalities. Debt due dates in April, May and June were postponed to July, August and September.
The measure is similar to the suspension of debt collection by the Central Bank. The authority will no longer include active debt or issue protest certificates to individuals residing and companies headquartered in the state.
