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According to Sindifisco-MG, the real debt does not exceed R$16 billion, and not the R$170 billion officially disclosed
An independent audit carried out by Study Center for the Promotion of Debt Auditing (Nepad) points out that the value of the debt of the State of Minas Gerais with the Union, officially released in $ 170 billion, was artificially inflated. The analysis, conducted by Sindifisco-MG with support from Affemg and the Citizen Debt Audit, concluded that, if the IPCA + 4% index were applied, the debt would not exceed R$16 billion, according to the EM website.
Old contracts and undue indexation distorted debt values
According to the president of Sindifisco-MG, Matias Bakir Faria, the origin of the debt dates back to contracts signed in 1998, when the State used the indexer IGP-DI plus 7,5% interest per year. The index, according to him, was not suitable for internal contracts, being more suitable for dollar-linked negotiations. In 1999, with the creation of the IPCA, which officially measured Brazilian inflation, the ideal debt correction should have been reviewed — which did not happen.
Sindifisco-MG criticizes the lack of transparency of the State Treasury
During the audit, tax auditors requested access to documents from the Finance Department and the Legislative Assembly, but only received a response from the Court of Auditors. “We offered to do the audit, but they didn’t want to. Minas Gerais’ debt never had a structural discussion”, said Bakir. According to him, Minas Gerais has two main contracts: one for $ 10 billion and another of $ 4,7 billion. Despite this, the State has already paid R$47 billion, which makes the announced balance of R$170 billion completely incompatible with reality.
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Debt review could free up to R$360 million per month for investments
The difference in calculations directly impacts the state's finances. If the real debt is in fact only R$16 billion, monthly payments would fall from R$400 million to R$40 million, freeing up R$360 million per month. Bakir argues that the state government should seek a settlement of accounts with the Union, also considering the credits from the Kandir Law, estimated at more than R$100 billion. “It is the role of the Finance Secretary to promote this debate with responsibility and strategic vision,” he concluded.
