The state of São Paulo is the federation unit with the highest debt balance guaranteed by the Union. According to a report released today (30) by the National Treasury, the government of São Paulo has R$ 37.558 billion in credit operations guaranteed by the Union, which can be covered by the Treasury if the state does not pay the financing.
According to Quarterly Report on Guaranteed Credit Operationsin the second four-month period, the total outstanding balance of guarantees granted to credit operations is R$ 280.571 billion.
The guarantees represent the assets offered by the National Treasury to cover possible defaults on loans and financing by states, municipalities and other entities with national banks or foreign institutions, such as the World Bank, the Inter-American Development Bank (IDB) and the Development Bank of Latin America (CAF). The Treasury compensates for defaults, but deducts the amount covered with blockages from transfers from the Participation Fund of States and Municipalities, in addition to preventing new financing.
The state of São Paulo holds most of the debt balance guaranteed by the Treasury, 13.4%. Then come Rio de Janeiro, with R$ 34.123 billion (12.2%); Minas Gerais, with R$ 22.247 billion (7.9%); Bahia, with R$ 16.026 billion (5.7%); Ceará, with R$ 14.172 billion (5.1%); Pernambuco, with R$ 11.175 billion (4%); Rio Grande do Sul, with R$ 10.916 billion (3.9%), and other states, with R$ 72.081 billion (25.7%).
The guarantees for credit operations are granted by the Union to federal entities and also to entities of indirect administration of the three spheres of government. According to the Treasury, the states concentrate 77.8% of guaranteed operations, with a debt balance of R$ 218.301 billion. Next are the municipalities and federal banks, with 10.4% (R$ 29.216 billion) and 7.1% (R$ 20 billion), respectively, of the outstanding balance. Controlled entities, such as water and energy companies, hold 2.7% (R$ 7.470 billion) and federal state entities, 2% (R$ 5.582 billion).
