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State negotiates adherence to Propag until the end of June 2026 and intends to use credit linked to Petrobras’ ICMS to reduce the debt balance and relieve pressure on Rio de Janeiro’s public accounts
The Government of the State of Rio de Janeiro is negotiating a strategy that could significantly reduce its debt with the Union. The proposal involves using an estimated R$ 20 billion credit related to Petrobras. The goal is to reduce part of the state liability, currently calculated at R$ 203.3 billion.
The information was disclosed by the Diário do Rio de Janeiro on Monday, June 8, 2026. According to the publication, state government representatives presented the proposal during negotiations for adherence to the State Debt Full Payment Program (Propag).
On the same date, Ricardo Couto, cited by the newspaper as a participant in the negotiations on behalf of the Rio de Janeiro government, reported that talks have advanced and that the State intends to complete adherence to the program by the end of June 2026.
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Furthermore, the state administration is considering using assets and financial credits to reduce the debt balance and improve its fiscal situation in the coming years.
Credit linked to Petrobras’ ICMS can accelerate debt reduction
According to the disclosed information, the R$ 20 billion credit is related to ICMS amounts that Petrobras would have to pay to the State of Rio de Janeiro.
Therefore, the government intends to use this amount as part of the negotiation with the Union. The strategy seeks to reduce the total debt amount and accelerate stages of the amortization process.
According to Ricardo Couto, using this credit could anticipate up to three years part of the schedule planned for the state debt payment.
“There is the possibility of us using this credit with the Union to make the debt payment, which could lead to an anticipation of three years,” he stated.
Meanwhile, technical teams continue discussing the operation’s details. The government is also evaluating other assets that could be part of the proposal presented to the Ministry of Finance.
According to Couto, the negotiations are close to a definition.
“We have some assets. The issues are well underway. We are looking at one or two points to be able to close. The schedule will be met,” he declared.
Propag can reduce monthly payment from R$ 436 million to R$ 119 million
The Full Payment Program for State Debts emerged as an alternative to renegotiate state debts with the Union. Additionally, the model allows the use of financial assets as part of the negotiations.
In the case of Rio de Janeiro, the program represents an opportunity to alleviate pressure on public accounts.
Currently, the State disburses around R$ 436 million per month to meet its financial obligations with the federal government.
However, if adherence to Propag is completed under the discussed conditions, this amount could drop to approximately R$ 119 million monthly.
In practice, this would represent a reduction of over R$ 300 million per month. Consequently, the government would have more resources available for investments in strategic areas.
Furthermore, the renegotiation can offer greater budget predictability. This way, the State can better plan its future expenses.
Government bets on assets to improve fiscal situation
Adhering to Propag has become one of the main bets of the state management to reorganize its finances.
For this reason, the government seeks to include different assets and credits in the negotiation with the Union. The strategy aims to reduce the outstanding balance without increasing pressure on the state treasury.
Public finance experts often point to this type of mechanism as an efficient alternative for highly indebted states. Moreover, the use of relevant credits can accelerate fiscal balance.
At the same time, the measure can create conditions to expand public investments and strengthen the State’s financial capacity.
According to the schedule presented during the negotiations held on June 8, 2026, the expectation of the Rio de Janeiro government is to formalize its adherence to Propag by the end of June.
If this happens, Rio de Janeiro could use a R$ 20 billion credit linked to Petrobras to reduce a debt of R$ 203.3 billion and decrease its monthly payments from R$ 436 million to R$ 119 million.
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