Highlights

The Brazilian Federal Supreme Court's Chief Justice determines that Brazil refrain from blocking R$575 million from Rio de Janeiro

The Chief Justice of the Brazilian Federal Supreme Court (STF), Justice Cármen Lúcia, determined that Brazil refrain from executing the obligations of counter-guarantees of loans contracted and not paid by the State of Rio de Janeiro, with guarantee of Brazil, before the filing of the Original Civil Action (ACO) 2981, reported by Justice Luiz Fux. In her decision, the Justice also determines that Brazil will provide restitution of the amounts that have been blocked.

In a petition forwarded to the STF in the action files, the State of Rio informed that, despite Justice Fux having clarified on March 5 that the early protection granted also reached the new treaty involving the account "B1 Banerj", was surprised with the communication that Brazil would block and execute the amount of R$574.8 million on the last day 6.

For the state, there was noncompliance with the decisions rendered by Justice Luiz Fux, a circumstance that causes obvious damages, making it impossible to pay salaries to the employees and the onlending to the municipalities. The arguments were welcomed by the Chief Justice Cármen Lúcia, who acts in the STF duty this July.

Read more