Supreme Court decides to adapt injunctions on debts of the states according to the Union

The injunctions granted to the states allow the payment of debts with lower benefits.
01/07/2016 13h45 - Updated 1/07/2016 13h45
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The Federal Supreme Court (STF) they decided, by majority, the adaptation of the injunctions granted to the states on the debt calculation with the Union to the agreement between the government and the states.

The injunctions granted to the states allow the payment of debts with lower benefits, He authorized the correction of debts by simple interest (which focuses only on the initial capital) and not compound interest (interest on interest), so that is currently adopted by the Union.

No last day 20, Minister of Finance, Henrique Meirelles, and representatives of 25 states reached an agreement to refinance debt. Under the agreement, the states and the Federal District will have a grace period of six months in installments until December. From January, benefits will have discounts, which will be gradually reduced until July 2018.

At trial today (1º), ministers discussed an action of Santa Catarina, the first state to get an injunction. Other states also appealed to the Court, as Rio Grande do Sul, Minas Gerais and Mato Grosso do Sul.

Most ministers followed the vote of the action of the rapporteur, minister Edson Fachin, yesterday said (30) have received Union information on the agreement signed with the states. The Union asked that the injunctions were revised to be applied the terms of the agreement discussed.

"I propose to the board that is granted [I accept] the request made by the Union in these terms so that precaution be applied to autos and liminal the exact terms of the adjustments negotiated with the states, from the first of July 2016, as the minutes of the meeting held on 20 last June ", disse Fachin.

In April, the Supreme put the issue on the agenda, but decided by 60 day trial of the action on the calculation of the debts of the states with the Union. The decision of the Court attended a proposal from Luis Roberto Barroso minister. Second or minister, the question should not be judicialized and, during the suspension period, It should be decided by the parties and the National Congress.

Source: Agency Brazil

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