São Paulo mayor paves way to settle billion-dollar debt with Brazil’s federal government

RIO DE JANEIRO, BRAZIL – São Paulo mayor Ricardo Nunes (MDB-SP) says an agreement to settle the city’s debt with Brazil’s federal government is close.

Currently amounting to R$25 (US$4.7) billion, the debt would be reset to zero after a settlement involving the Campo de Marte airfield in the capital’s northern part. The city government currently spends R$250 million a month to pay off the debt.

The dispute is decades old – the airport was transferred to the federal government after São Paulo’s defeat in the 1932 Constitutionalist Revolution (celebrated as a holiday in São Paulo state on July 9) and, years later, City Hall started demanding the accumulated ‘rent’. The dispute is in the Federal Supreme Court, with the latest vote in favor of the city.

“We have discussed a settlement, in which the municipality would be relieved of its debt and the federal government would also resolve this judicial dispute,” Nunes said.

According to the mayor, who was in meetings in Brasilia last Tuesday, a technical committee will be created with the Federal Solicitor General’s Office (AGU) to coordinate and expedite negotiations.

“We talked with president Bolsonaro, who said he thinks it’s fair, as long as there is a favorable opinion from the AGU, and asked for agility in the situation,” says Nunes.

Source: Veja

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