Precatório: AGU will listen to the market before publishing rules – 05/17/2023 – Panel SA

The chief minister of the Attorney General’s Office (AGU), Jorge Messias, said this Wednesday (17) that he will consult market agents and other interested parties on the regulation that will deal with the use of precatories to pay concession grants, buy public properties and do other business with the government.

“We are going to present, by the end of this month, a draft of an ordinance for the regulation of the subject, we are going to submit it for public consultation. This draft will remain open, you will have 10 days to present criticisms, suggestions. We will return these criticisms and suggestions until the conclusion of the final act”, he said.

The declaration was made at the event “A new cycle in Politics”, in Brasília, coordinated by the Figueiredo & Velloso Advogados Associados law firm.

Big Brazilian banks are the main ones interested in the subject because they bought more than R$ 30 billion in precatorios, today negotiated by concessionaires, and follow the development of the impasse in the government.

The minister also said that he is committed to the swift publication of the new norms, in “the most transparent way and that best safeguards legal certainty and the public interest”.

Precatorios are net and certain credits of third parties with the Union, arising from final and unappealable lawsuits. A constitutional amendment enacted by Congress in 2021 allowed the use of these bonds as currency in operations with the Union. The rule is self-applicable, according to the text of the Magna Carta.

The issue, however, became an imbroglio for the government. AGU decisions suspended the analysis and approval of processes of this nature until new rules are published with the procedures to be followed by the various public bodies.

The solution adopted by parliamentarians is an attempt to reduce the government’s growing stock of judicial debts and improve public accounts. For companies, negotiations of this type are advantageous because the securities are acquired from the original creditors in the market, at a discount. The government, however, fears that the use of this mechanism will reduce revenues arising mainly from the payment, in cash, of granting concessions.

With Diego Felix

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