See what happens to those who have court orders to receive if the PEC is approved

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The precatório PEC remains a puzzle for the Brazilian budget in 2022. The government maintains the signal that the approval of the proposal is essential, while on the other side there are those who call it default. But after all, if the PEC is approved, what changes in the life of those who have debts to receive from the Union?

The court orders are debts legally recognized by the Union. It can be a deficit linked to states, private companies or citizens. The government is obliged to pay off these debts, but through the PEC it intends to reformulate the total amount to be debited so that it can get part of the budget destined to the creation of the new Bolsa Família.

Currently, the order of priority payments for court orders is:

  • RPV (small value court orders, are federal debts of up to 60 minimum wages)
  • Priority by disease and age (over 60 years old)
  • Food orders (retirements, salaries, pensions, benefits)
  • Common court orders (expropriation, taxes)

However, the PEC in progress in the Federal Senate brings changes in the order of payments as well as creates mechanisms for the government to parcel out part of the amount to be debited.

If the PEC is approved, the order of payment priorities will be:

  • RPV
  • Priority by disease and age
  • FUNDEF court orders (Basic Education Fund court orders)
  • food precatory
  • common court orders

The main change occurs with the introduction of Fundef precatório on the list, precatório of education that states and municipalities have. This type of precatório had some rules changed in the Chamber of Deputies, on Tuesday (9).

Payments of R$ 20 billion are planned for next year for RPVs, R$ 13 billion for priority by law, R$ 7.1 billion for Fundef (which the PEC plans to pay 40% in 2022), R$ 20 billion for common court orders, BRL 3 billion for other legal expenses and BRL 1 billion for financial expenses. The data are released by the Ministry of Economy.

In total, there are more than R$64 billion to be spent by the government in 2022. When you add monetary and interest adjustments, the value jumps to almost R$90 billion.

The PEC dos Precatório stipulates that around R$ 45 billion reais will be paid off next year, which opens a gap for the rest of the debts established.


Minister Paulo Guedes stated, on Thursday (11), that the Brazilian government has “many assets” that can be traded with people with debts to receive and that “no one would be in the queue”.

According to Breno Rodrigues, CEO of Mercatório, a startup specializing in the precatory market, with the entry of Fundef’s debts, people who should have received it in 2022 can only receive payment in 2023 or 2024.

“It will create a snowball in which we estimate that 2022 payments will only finish being paid in 2024,” he says.

Rodrigues says that those individuals who have lower amounts of court orders that are not considered RPVs may be among those to acquire the amount only in 2023 or 2024.

“These are people with precatory orders of R$ 60 thousand or R$ 70 thousand and who really need this money”, he says.

As they are individuals who cannot stand to wait, Rodrigues said that a solution that can be sought by these people is to sell the precatório to the government. This means that they give up part of the profit to raise capital immediately.

“Today, court orders are sold at 70%, 80% of the original value, but the trend is for it to fall by half and be 35%, 40%”, he explains.

Reference: CNN Brasil

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