Officers aim to engage with BNDES for a discussion on the specific timeline regarding the appraisal of assets.
With Minas Gerais State Lawmakers and BNDES on the Clock
The ticking clock is running for Minas Gerais state lawmakers, who are eagerly waiting to meet with representatives of the National Economic and Social Development Bank (BNDES). The reason? The federalization of assets in Minas Gerais to join the Full Debt Payment Program for States (Propag).
The Public Administration Commission of the Legislative Assembly of Minas Gerais (ALMG) approved a request, originally submitted by deputies Cassio Soares (PSD), Gustavo Valadares (PMN) and João Magalhães (MDB) and backed by Governor Romeu Zema (Novo), for this significant meeting.
Recent debates at the commission raised questions about the deadline for delivering assets, with some criticisms during the meeting. To address these concerns, the Vice-Governor of Minas Gerais, Mateus Simões (Novo), met with BNDES representatives in Brasília, stating that the Bank would not finish assessing the assets on time this year. This delay could potentially violate the October deadline set by the federal government.
Deputy Professor Cleiton (PV) argued that the Minas Gerais government was "lying" about points involving the Propag, such as the assessment deadlines by the BNDES. He emphasized the importance of taking the Propag issue seriously and avoiding extremist, non-constructive speeches that might derail negotiations.
The Propag allows state-owned companies to be federalized until 30th June 2026, six months after the end of the subscription deadline (31st December 2025). This timeline coincides with the BNDES' projection to complete the pricing of the companies only in 2026.
Cassio Soares, leader of the bloc of Governor Zema, maintains that the meeting with the BNDES seeks to clarify the deadlines for assessing the assets. He hopes the meeting will happen "as soon as possible," but the date will depend on a schedule from the BNDES. If there's a delay in meeting the October deadline, the federal government would ultimately decide the fate of other projects to join Minas Gerais to the Propag.
- MINAS DEBT
- FEDERALIZATION OF ASSETS
- BNDES
- MG GOVERNMENT
- PROPAG
- ALMG
Sources: O TEMPO, personal insights written in italics
Soon, legislators from Minas Gerais and BNDES reps will presumably discuss the feasibility of meeting the Propag deadline for federalizing assets, as concerns mount about BNDES' ability to assess the slated assets on time. This meeting is crucial to prevent potential delays in related legislative projects and avert complications in the fiscal arrangement for state debts.
The upcoming meeting between Minas Gerais state lawmakers and BNDES representatives becomes increasingly important, as the discussion revolves around the feasibility of meeting the Propag deadline for federalizing assets. The meeting aims to address concerns about BNDES' timely assessment of the assets, which could impact both the Minas Gerais government's fiscal arrangement for state debts and related legislative projects.
