“Many people can be without precatório and Auxílio Brasil”, says specialist

In an interview with CNN this Friday (12), Breno Rodrigues, CEO of Mercatório, a startup specializing in the precatório market, says that many Brazilians will be “in limbo” between receiving the precatório and Auxílio Brasil.

“There is a risk that people who have small amounts of court orders will not be paid next year. Court orders of R$ 60 thousand, from people who need the money, end up not being paid”, he explains.

This means that, in a scenario in which the PEC is approved, people who are in line to receive payments on legally recognized debts may only receive the amount in 2023 or 2024, according to Rodrigues.

In order to move forward with the new Bolsa Família as quickly as possible, the government maintains the approval of the PEC dos Precatórios as one of the short-term objectives. The proposal is still pending in the Senate and, if approved, it will create space for the budget for the social program, which is essential for the government in 2022.

Economy Minister Paulo Guedes said during an event on Thursday (11) that he is hopeful with the approval of the PEC. “This makes the budget feasible and extends into the foreseeable future, in other words, there will be no more scares in court orders,” he said.

Guedes denied that the approval of the proposal is the same as defaulting and stated that the government will pay the debts known in court.

“Evidently it is not default. If you are saying that you pay cash for everything that is in the ceiling, what is outside, you offer alternatives, such as paying next year or with assets. With the amount of assets that the Brazilian government has, we will not have a queue”.