Minister Nunes Marques, of the Federal Supreme Court (STF), decided this Thursday (1st), in Brasília, to extend the suspension of payment of Minas Gerais’ debt with the federal government until August 28th.
The judge responded to a request from the state government to extend another decision by the Court, issued by Minister Edson Fachin, which also ordered the suspension of the deadline, which was due to end today.
In the decision, Nunes Marques understood that it is up to the Judiciary to mediate the issue.
“The intervention of the Judiciary is justifiable given its role as a mediator of the interests of political entities, seeking a consensual resolution to regularize the serious fiscal situation of the member state”, justified the minister.
In an opinion sent yesterday (31) to the Supreme Court, the Attorney General’s Office (AGU) was against granting the extension.
Tax recovery
In its opinion, the agency argued that the government must approve counterpart measures in the state legislature to join the federal government’s fiscal recovery regime. In addition, the AGU argues that the debt installments must be paid normally.
“The Union understands that it is essential for the state of Minas Gerais to signal its commitment to fiscal rebalancing with, at the very least, the resumption of payment of its debt service, even if in the beneficial model already discussed by this central, consisting of the return to payment as if it were under the Fiscal Recovery Regime, so that it is possible to consider the possible opening of conciliation proceedings”, stated the AGU.
Minas Gerais’ debt to the federal government is around R$165 billion.
