Leite repeats Zema and asks Haddad for a proposal for the debt of RS and other states

The governor of Rio Grande do Sul, Eduardo Leite (PSDB-RS), met with minister Fernando Haddad (Finance) this Thursday (7) to ask the government to discuss the state’s debt with the Union, similar to what Romeu did Zema (Novo-MG) on Wednesday (6).

Leite defended the holding of a joint meeting between the governments of Rio Grande do Sul, Rio de Janeiro, Minas Gerais and Goiás with the Ministry of Finance to discuss the renegotiation of debts. Upon leaving the ministry, he classified the conversation as “very positive” and said that Haddad indicated the possibility of a joint meeting in March to discuss the matter.

“Minister Haddad gave a concrete signal that we will have a ministry meeting in March with the states that have this debt issue as the most important, to have a first proposal on the table”, he stated.

The states of Rio Grande do Sul, Rio de Janeiro, Minas Gerais and Goiás are in the fiscal recovery regime, being cited by Leite as those that should address the issue in a meeting with the Treasury. He also mentioned the possibility of São Paulo joining negotiations with the Union, despite not being in the fiscal recovery regime.

“São Paulo is not in the fiscal recovery regime, but it has a high debt with the Union. […] It is a substantial amount and it is possible that the state of São Paulo will also join the Union in this demand”, explained the governor of Rio Grande do Sul.

The Fiscal Recovery Regime (RRF) was established by law and offers benefits to states and municipalities in situations of fiscal imbalance, such as the suspension or extension of payment of debts owed to the Union, which has the federal government as guarantor. In return, the benefiting entities must achieve goals and comply with established rules.

Still during the meeting, Leite proposed the removal of a monetary correction factor from the fiscal recovery contract, which is indexed to the Selic interest rate. “[Isso] has an impact on the amount of debt. We propose that interest rates, which are currently at 4%, be brought to 3% nominally and be established fixed”, he added.

On Wednesday (6), Zema explained that the National Treasury Secretariat will present a proposal to improve the current RRF by March, in a similar tone to Leite’s. “This point, it is worth remembering, is extremely important not only for Minas Gerais, but also for the other states that have already joined: Rio de Janeiro, Rio Grande do Sul, Goiás”, he pointed out.