The Brazilian Treasury, later this week, will pay all of the R$57 billion in arrears it owes to state-run banks and funds, Acting Treasury Secretary Octávio Ladeira said Monday. The arrears total was determined by Brazil’s Supreme Auditing Court. The Treasury accumulated the arrears by delaying transfer payments to state-run banks and government-controled funds such as the nation’s unemployment insurance fund. The delays caused the state banks and funds to meet benefit payments to Brazilian citizens from their own resources in what amounted to forced loans to the Treasury. The Auditing Court has ruled the delays as a violation of Brazil’s Fiscal Responsibility Act.
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