Lula government pays off debt of R$4.6 billion with foreign institutions

The Ministry of Planning and Budget announced this Thursday (4) that the Brazilian government paid, in 2023, R$4.6 billion in financial commitments with international organizations and zeroed the debt with these institutions. The announcement was made with the Ministry of Foreign Affairs, which reported that the money was transferred to the United Nations (UN), multilateral banks, international funds and dozens of institutions.

According to the ministry, R$2.7 billion corresponds to outstanding amounts on December 31, 2022. The remaining R$1.9 billion refers to commitments from last year.

The most recent payment occurred on December 21, when the government paid R$289 million in regular contributions to the UN and paid R$1.1 billion in debts to peacekeeping missions.

Without liabilities with the United Nations, Brazil guaranteed the right to vote in the UN General Assembly in 2024, in a year in which the country presides over the G20, a group of the 20 largest economies on the planet. In the second half of 2023, Brazil chaired the international organization’s Security Council.

“This compliance framework, which results from the joint work of the Ministry of Planning and Budget and the Ministry of Foreign Affairs, in addition to other federal government bodies, strengthens Brazil’s image on the global and regional international stage, reaffirms the country’s commitment to multilateralism and reinforces the capacity for diplomatic action in favor of national interests and the principles that govern Brazilian foreign policy”, highlighted a joint note from the ministries.

After paying the debts, the government announced the list with the recovery of voting rights in the following bodies:

• International Organization for Migration (IOM);

• Comprehensive Nuclear Test Ban Treaty Organization (CTBTO);

• International Atomic Energy Agency (IAEA);

• Organization for the Prohibition of Chemical Weapons (OPCW);

• International Criminal Court (ICC).

In the statement, the two departments also reported that debts with multilateral organizations as:

• Organization of American States (OAS);

• World Trade Organization (WTO);

• United Nations Educational, Scientific and Cultural Organization (Unesco);

• International Labor Organization (ILO);

• World Health Organization (WHO);

• Food and Agriculture Organization of the United Nations (FAO).

The debts paid by the current government were presented by the transition office of former president Jair Bolsonaro. At the end of December 2022, Itamaraty received R$4.6 billion, which was converted into balances payable for 2023.

Latin America

In the sphere of Latin America, the ministries reported that around R$500 million in contributions to the Mercosur Structural Convergence Fund (Focem) was regularized in April. The fund provides resources for projects in areas such as urban infrastructure, security, basic sanitation and health.

When making the payment, Brazil had access to R$350 million to finance projects in Brazilian municipalities in border regions with Mercosur countries. In December, during the 63rd Ordinary Meeting of the Mercosur Council, the government settled R$14.6 million with the Mercosur Social Institute (ISM).

The government also paid off debts with regional bodies such as: Latin American Integration Association (Aladi) in 2023; Mercosur Secretariat; Mercosur Parliament (Parlasul). And he also paid contributions to the Institute of Public Policies on Human Rights (IPPDH) and the Secretariat of the Permanent Review Court (TPR) of Mercosul.