Brazil's Treasury Pays R$1.05 Billion on State Guarantees in November, Led by Rio

Overview

• Of the November total, R$704.8 million covered Rio de Janeiro, R$227.8 million Rio Grande do Sul, R$75.3 million Goiás, and R$35.6 million Minas Gerais, with smaller amounts for Parauapebas (R$9.6 million), Paranã (R$116.1 thousand) and Santanópolis (R$76.47 thousand).
• Year to date, guarantees honored reach R$9.6 billion, of which R$4 billion relate to Rio de Janeiro.
• Since 2016 the Union has honored about R$85.04 billion and recovered roughly R$5.9 billion, or around 7 percent, with just R$9.84 million recovered in November.
• Exposure remains concentrated in a few highly indebted states, many under the RRF, which suspends contragarantias and allows restructurings that can extend to 360 months.
• The Treasury published the figures in its Monthly Report and Guarantees Panel, noting creditors often include public banks such as BNDES and Caixa as well as multilateral institutions.