Government is meeting with States to renegotiate debt

The wing government policy states that the Ministry of Finance offers a ten-month moratorium.
20/06/2016 07h45 - Updated 20/06/2016 18h02
Photo: reproduction

fter the help of the wave of R $ 3 billion for Rio de Janeiro, governors will meet on Monday, 20, in Brasilia to pressure the federal government to address the issue of debt negotiation agreement of all the States this week.

The government's political wing advocates greater relief that offered by the Ministry of Finance: a moratorium ten months.

A longer period for the shortage should serve as a kind of armistice in the struggle being waged for months on the issue of debts.

The Ministry of Finance offered only one month of suspension 100% debts and a gradual decrease of grace 5% each month. In this way, in the first month was 100%, no second, 95%, to zero, after 18 months.

States made a formal proposal for a moratorium for two years. The Ministry of Finance was sought by the report on Sunday, 19, but he preferred not to comment.

“States need an overall shortage in the coming months. Only then can we pay servers, service providers, put our bills on time”, said the governor of the Federal District, Rodrigo Rollemberg (PSB).

In this Monday, he receives the governors to a meeting at the official residence, in Aguas Claras. After lunch, the meeting will be with the Minister of Finance, Henrique Meirelles. Then, meet with President Michel Temer in exercise.

“See sensitivity of the federal government to meet this request. We will not get two years, as we asked, but we will have a longer period [the proposal of Finance]”, said the governor.

Rollemberg said Temer, with whom he met on Thursday, It showed the mood to find a solution that is good for all states.

In 27 of April, or Federal Supreme Court (STF) He ordered the suspension of two months of debt payment for a new methodology was negotiated to pay off debts, dating back to the years 90. Most of the debt refers to the payment of interest.

The deadline given by the Supreme Court to States and Union understand about the dispute over the restructuring of debts and recalculation of the regional governments liabilities ends next Monday, day 27.

The Union no longer receive per month from R $ 2,5 billion and R $ 3 billion with the suspension of payments. The federal government has set aside between R $ 27 billion and R $ 29 billion to cover these expenses, value that would cover the suspension for ten months.

A source of the economic team said that the lack of 100% the debt for two years is a “overkill” and that would create problems for governors who will take the state governments 2019. He said the economic team must push for the gradual reduction of the percentage of shortage to zero.

“If the federal government does not address this issue soon, Cascade the same situation in Rio de Janeiro”, said Secretary of Finance of the government of Santa Catarina, Antonio Gavazzoni.

On Friday, Rio's governor, Francisco Dornelles (PP), He declared a state of calamity, on the grounds that the financial crisis prevented the state to honor the commitments made to hold the Olympics.

For the Secretary of Finance of São Paulo, Renato Villela, the relief to Rio de Janeiro will end up helping the other Member. He said he supports the help of the government of Rio de Janeiro, since it does not harm the tax relief to other States is negotiating with the Federal Government.

According to him, otherwise, other state governments will be in a similar situation to Rio in a very short time, mainly because the Union's revenue with taxes that are shared with the states continue to fall.


“The focus of negotiations with the States is general solution”, he said, emphasizing that helps to Rio can not leave fiscal space reserved in the accounts this year for assistance to all States.

The state of Sao Paulo, secured Villela, You do not run the risk of having problems with the payment of wages, for example, but if the situation of economic crisis continue, the picture may worsen.

“Over the next year, It will depend on how the economy will react”, he said. According to him, negotiations with the Ministry of Finance are “mature” and the expectation is that there is an agreement over this week.

Sao Paulo, however, still negotiating a larger catches than stipulated at R $ 160 million for discounting the monthly installment, since the state pays R $ 1,2 billion per month debt service.

With this lock proposed by the federal government, in practice, the lack of 100% for the state would be in 13%.

The Treasury secretaries coordinator of the National Council policy farmer (Confaz), André Horta, North of the Rio Grande, also expects a definitive solution.

According to him, the declaration of financial calamity at Rio will speed up negotiations. Horta also advocates a discussion of measures to increase revenues of states and municipalities, with the rise of federal taxes, shared with loved.

One way would be the return of billing 15% income tax on the distribution of profits and dividends. According to him, would generate a revenue of R $ 50 billion per year.

The increase would be made by an ordinary law, with easier processing than the return of the CPMF, it would be via Proposed Amendment to the Constitution (PEC).


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