The President of the Republic, Luiz Inácio Lula da Silva (PT)stated this Monday, 22, that the federal government will not create obstacles for the interim governor of Rio de Janeiro, judge Ricardo Coutoshow that it is possible to have an “example of good governance”. The speech was made during the State’s accession ceremony to the Full Payment of State Debt Program (Propag).
“There will be no objection from the federal government to you having the opportunity to give this State an example that it is possible to have good governance, in which money is channeled to improve the lives of these suffering people”, declared the president.
In a speech marked by nods to Ricardo Couto, Lula also congratulated the interim governor for joining Propag and said that he has the “chance” of restructuring Rio de Janeiro. “May you become the governor who made the necessary corrections for Rio de Janeiro to work,” he stated.
Propag offers more advantageous conditions for paying the States’ debt to the Union. Through it, governments can extend the deadline for paying off debts and reduce financial charges. On the other hand, States need to invest in strategic areas to access tax benefits.
By joining the program, Rio de Janeiro — which today pays around R$490 million monthly payments to the Union — you will have a reduction in payments. The value drops to R$113 million per monthwith a gradual increase over five years.
In his speech, Lula stated that Propag is a way to benefit both the Union and the most indebted States. According to him, the measure allows the federative units to pay their debts without being in a “gallows”.
