The Congress enacted on Wednesday (9th) Constitutional Amendment Nº62/09, which changes the rules for the payment of precatórios – court-ordered payments of the debts of the Union, the states, the Federal District and the municipalities to individuals or companies, acknowledged by a court.

The amendment creates a special procedure whereby the discharge of food-related debts and of those of lesser value takes precedence over others. The approved text also obliges municipalities to allocate between 1% and 1.5% of their net current revenues to the payment of the writs. This percentage is between 1.5% and 2% in the case of the states.

As a result of the amendment, 50% of these resources will be used for payment in chronological order and in cash. The other half must be paid off through auctions, where the lender giving the biggest discount on the total debt will be paid first. There is also provision for payments of debts in increasing order of the amount owed, or by agreement between the parties.

The amendment also stipulates that the values of the debts will be adjusted in accordance with the rules of the Savings Account Book (a very popular saving program which protects small investors’ money from the effects of inflation and guarantees a minimum remuneration for their savings).

From the Newsroom/ PCS/RX
With information obtained from the Senate
Translation – Rejane Xavier