The Provisional Measure (MP) 470/09, adopted by the Floor on Wednesday (2nd ), prohibits public entities from entering into agreements, licensing installation projects or loans to any overseas-based company that has a controlling stake in another company with debts to the public sector that have not been paid off.

This prohibition affects the direct and indirect administration of municipalities, states, the Federal District and the Union, whether or not the debts have been paid off under the jurisdiction of another body.

“Crisis Refis "
The MP also redefines the timescale for refinancing the debts owed individuals and companies to the Federal Government as set out in Law 11.941/09, which became known as the Crisis Refis. ("Refis" is the popular name of a previous "Fiscal Recovery Program", a special installment plan for repaying debts to the Federal Government).

Borrowers may join the installment scheme within 30 days after MP No. 470/09 becomes law and may choose to include liabilities of a fiscal or any other nature, including those originating from the Federal Attorney Generals Office, the Attorney General of the Union's Office, the Solicitor General's Office and the municipalities.

Railroad Trains
Arguing that the government has not detailed the estimated revenue foregone as a result of this incentive, the rapporteur, Jovair Arantes (PTB-GO), excluded from the MP the "accelerated depreciation" granted to the railroad industry.

This depreciation could have been be used by companies that bought or ordered wagons, locomotives and railcar movers between October 1 and December 31 this year.

Railcar movers are a combination of truck and goods engine. Instead of steel wheels, they have tires that run directly on the tracks with more grip and allow maneuvers that are impossible for a conventional locomotive.

Report - Eduardo Piovesan
Edition - John Pitella Junior
Translation – Rejane Xavier