Jamil Chad Elected government seeks way out of Bolsonaro’s R$5 billion debt abroad 24.11.2022 04h00

Jair Bolsonaro’s government is leaving Brazil with more than R$5 billion in debt to international organizations, forcing the transition team in Itamaraty to expedite the removal of pending issues to prevent the country from forfeiting its right to vote in institutions like the FAO. and others.

The letter learned that the transition team assembled at the Prime Minister’s Office requested a thorough examination of all accounts that Brazil would pay to organizations such as the UN, regional banks, treaties or international mechanisms. The value and status of each of the country’s debts will be presented tomorrow, by Friday.

Based on this survey, the group, which includes diplomat Audo Faleiro and former foreign ministers Celso Amorim and Aloysio Nunes, will examine what are the most urgent bills to prevent Brazil from losing its right to vote in international decisions.

Based on this information, the new government of Luiz Inácio Lula da Silva will have to negotiate with Congress in January 2023, in the first days of the new administration, to release funds to allow some of these bills to be paid.

In response to the report, the Ministry of Economy approved the amount of pending items.

“Brazil currently has commitments of $630,730,439.92 due by December 31, 2021 and commitments for 2022 of $329,954,869.21, due by December 31, 2022,” the folder said. .

“At today’s exchange rate of 5,2930 BRL per US dollar, these overdue liabilities and 2022 commitments are equivalent to 3,338,456,218.50 BRL and 1,746,451,122.75 BRL in local currency, respectively,” the Ministry of Economy said.

That is, Brazil needs to find funds to pay at least a portion of the over R$5 billion amount.

Some situations are particularly urgent, such as the FAO (Food and Agriculture Organization of the United Nations). The Brazilian government could forfeit the right to vote in the institution in 2023 without paying the mandatory contribution.

FAO data from the column reveal that Brazil last paid its contribution in 2019, the first year of Jair Bolsonaro’s tenure. Transfers have since been suspended.

The rule in the organization dictates that if a government completes two years without making full deposits, the institution loses its right to vote in its decisions. Today, Brazil contributes about 3% of the FAO budget and would have been the eighth largest contributor to the agency’s budget had it paid its dues.

Itamaraty, whom the report contacted to comment on the situation, explained that “transfers referring to contributions to international organizations are the responsibility of the Ministry of Economy.”

“Brazil’s debts to the FAO include amounts in US dollars and euros, and their payment and other budgetary actions are subject to financial restrictions applied to the federal budget within the amounts prescribed in the Annual Budget Act,” he said.

“Currently, amounts owed by Brazil until 30/06/2022 broken down by currency (USD) [dólar] and euros [euro]), it is $23,563,897.70 USD and 16,651,071.42 Euros, respectively,” he added in the budget.

In 2023, the FAO Council meets to determine the course to fight hunger in the world. However, if it does not pay its debt by the end of the year, Brazil will not be able to speak up in the decisions. Debt situations were experienced especially by Brazil during Dilma Rousseff’s second term. But at least in FAO the country never lost its right to vote.

Now, even if they avoid forfeiting their rights, the situation with the Brazilian government is described by agency officials as “shameful” and “disclosure” of current foreign policy. To retain full FAO rights, Brazil had to pay the sums for at least 2020. This would include at least the payment of US$7.6m and 5.5m euros to recover the right to vote. Countries like Venezuela, Iran or Libya are also threatened with losing votes.

Brazil’s debt to the food establishment has caused the anger of Brazilian José Graziano da Silva, who ran the institution from 2012 to 2019. Graziano was a minister in the government of Luiz Inácio Lula da Silva and is considered the father of the Fome Zero program.

“Brazil has not paid the mandatory FAO contribution quota since 2019 and is at risk of being excluded from the agency’s decisions,” he said. “If he does not pay at least part of the debt, he loses his voting rights,” he said.

“This is an unacceptable situation. At this time when Brazil is trying to reintegrate into the world, FAO has a symbolic value. It is where measures to combat hunger in the world will be discussed,” Graziano said.

He remembered that in 2002 FAO sent a special mission that stayed in Brazil for weeks and helped establish Fome Zero.

Graziano also highlighted how Lula made it a priority to get Brazil off the hunger map. That’s why it’s important to make a move to pay this bill. The former head of the FAO also highlighted how Bolsonaro has been distributing aid to various sectors prior to the elections, including truck drivers who have been involved in the coup d’état in recent days, as debts pile up abroad.