The Minas Gerais government suggests August 28 as the new limit; the state’s debt to the federal government totals R$165 billion
The government of Minas Gerais asked the STF (Federal Supreme Court) on Friday (19.Jul.2024) a new deadline to renegotiate the State’s debt with the Union, of R$ 165 billion.
On Tuesday (16 July), Court Minister Edson Fachin extended the deadline for Minas Gerais to join the federal government’s REF (Fiscal Recovery Regime) until 1 August, in response to a previous petition from the State.
Initially, the 90-day deadline for joining was set to end on Friday. The date was set in April by the rapporteur of the case, Minister Nunes Marques. Fachin made the decision as the vice president of the Court. Due to the July recess, it is up to the president to decide on urgent matters.
In the new request, the Minas Gerais government suggests August 28 as the new deadline, the date on which Fachin’s individual decision must be judged in the plenary.
“The request for extension is a crucial matter to avoid legal uncertainty, as well as the risk of collapse of the State of Minas Gerais, if the effects of the 2nd precautionary measure are not extended until the end of the trial that will begin on August 28, 2024”says the State.
The petitions from the Minas Gerais government reached the STF after the AGU (Attorney General’s Office) understands that a new extension of the deadline for Minas Gerais to join the RRF must be conditioned on the return of payment of the debt to the Union.
In the Legislature, the President of the Senate, Rodrigo Pacheco (PSD-MG), presented on July 15th a bill to try to settle the states’ debt with the Union. The text establishes the installment plan for 30 years. Together, the debts of the states of the Federation exceed R$760 billion. Minas Gerais, Rio de Janeiro, Rio Grande do Sul and São Paulo account for almost 90% of this amount.
With information from Brazil Agency.
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