Lula's government announces suspension of Rio Grande do Sul's debt with the Union for three years
The action aims to free up R$11 billion for a fund dedicated to the reconstruction of the state
247 - The Federal Government announced on Monday (13th) the suspension of Rio Grande do Sul's debt payments to the Union for a period of 36 months. This action aims to free up resources amounting to R$11 billion for a fund dedicated to the reconstruction of the state, which was severely hit by recent environmental disasters, mainly due to heavy rains.
During today's meeting between the federal government and the governor of Rio Grande do Sul, Eduardo Leite, the Minister of Finance, Fernando Haddad, announced this suspension of the payments of the state debt installments to the Union, providing considerable relief to the state's finances at a critical moment.
In addition to the suspension of payments, another significant measure is the forgiveness of interest on the state debt, which will be zeroed out over the entire stock for the same three-year period. This forgiveness represents a significant value of R$12 billion, contributing even further to the financial stability of Rio Grande do Sul amid the current crisis.
In his speech during the meeting, Minister Haddad emphasized the importance of these measures for the state, stating: "We will have R$11 billion reais for an accounting fund that should be invested in the reconstruction of the state."
The intense rains that have plagued Rio Grande do Sul have resulted in a human and social tragedy, with an alarming number of deaths and missing persons. According to Civil Defense data, there are already 147 confirmed deaths and 127 people missing. More than 2 million people have been affected by the floods, leading a significant portion of the population to seek refuge in higher areas and even in neighboring states, such as Santa Catarina.
The impacts of the rains are also reflected in the state's infrastructure, with 303,000 points without electricity and 208,000 properties without water.