President Lula authorized on Tuesday (5th) for Rio de Janeiro to exit the Fiscal Recovery Regime and join the States' Full Debt Payment Program (Propag). With this change, the state's monthly debt payment to the federal government will drop from R$ 490 million to approximately R$ 113 million.
Rio de Janeiro was under the Fiscal Recovery Regime (RRF) and faced a debt of R$ 193 billion with the federal government, representing most of the state's fiscal deficit estimated at R$ 19 billion. The Propag is a program created by the federal government that allows extending the payment period for state debts up to 30 years and reducing financial charges, in exchange for investments in strategic areas like education and sanitation.
Lula authorized Rio's exit from the Fiscal Recovery Regime and adhesion to Propag on Tuesday (5th)
Propag allows extension of payment terms up to 30 years and reduction of financial charges
Rio's monthly debt payment will drop from R$ 490 million to about R$ 113 million
Covered by only some sources, or where the accounts diverge.
Covered by only some sources (3)
Rio's total debt was R$ 225 billion at the beginning of the year, with R$ 193 billion owed to the federal government
The state's fiscal deficit is estimated at R$ 19 billion for this year
There are still steps to be completed before definitive adhesion, with a deadline for completion by the end of June
No gaps declared — all sources converge on the material facts.