The numbers cover debts guaranteed by the Union and not honored by five states.| Photo: Marcelo Andrade/Gazeta do Povo/archive

The federal government paid BRL 1.4 billion in arrears from states and municipalities in May. The data were disclosed this Wednesday (7) by the National Treasury Secretariat (STN). The numbers cover debts guaranteed by the Union and not honored by five states and are included in the Report on Guarantees Honored by the Union in credit operations.

There were R$ 721.93 million related to default in Rio de Janeiro, R$ 352.76 million in Pernambuco, R$ 216.25 million in Rio Grande do Sul, R$ 75.01 million in Goiás and R$ 38.44 in million from Minas Gerais. In total, since 2016, the Union has disbursed BRL 56.98 billion to honor guarantees granted to credit operations in secured debts of subnational entities.

The guarantees represent the assets offered by the Union – represented by the National Treasury – to cover possible defaults on loans and financing from states, municipalities and other entities with national banks or foreign institutions, informed Agência Brasil. As guarantor of the operations, the Treasury is informed by the creditors that a certain portion of the contracts has not been discharged.