“Impossible” for RS to maintain payments to the Union, says Pacheco

The president of the Senate, Rodrigo Pacheco (PSD-MG), said this Tuesday (May 7, 2024) that he “impossible” that Rio Grande do Sul maintains the payment of its debt of R$3.5 billion with the Union.

According to Pacheco, the Minister of Finance, Fernando Haddad, must present a specific economic measure for the State, hit by historic rains that have already left 85 people dead, according to the latest Civil Defense bulletin. The other proposal is more “structuring” and encompasses the regularization of the debt of other states, according to the senator from Minas Gerais.

“It is practically impossible to demand that the State maintain regular payment of debt under its tax recovery regime. So, naturally, a proposal will come from the federal government that could give at least a momentary boost to Rio Grande do Sul”declared Pacheco in an interview with GloboNews.

The governor of Rio Grande do Sul, Eduardo Leite (PSDB), asked for the suspension of payment of the monthly installment of the State’s debt with the Union for the period that the damage caused by the rains is being reconstructed.

Pacheco also stated that the project prepared by Haddad should bring economic exemptions to other sectors of Rio Grande do Sul that were affected by the rains.

The president of the Senate also stated that the disaster highlights the need for special resources to prevent natural disasters in the country.