Brazil’s State Government Bankruptcy Law

  • Brazil’s State Government Bankruptcy Law
    Author
    • Fernando de Holanda Barbosa Filho

      Graduated in Economics from the Federal University of Rio de Janeiro (UFRJ), Fernando holds a Master's in Economics from FGV's EPGE Brazilian School of Economics and Finance (EPGE) and a Ph.D. in Economics from New York University. He is currently a researcher at the Center for Growth and Economic Development (CCE) at FGV's Brazilian Institute of Economics (IBRE), and is a professor at FGV. He has experience in the area of Economics, focusing on Growth, Fluctuations and Economic Planning,and working mainly on the following subjects: education, growth, human capital and productivity.

Summary

The paper presents elements and suggestions that can deepen debate on the elaboration of a bankruptcy law for entities federated in Brazil, so that new structural solutions can be matured for the fiscal crisis of the country. The critical financial situation of some Brazilian states has been an important factor behind the Brazilian crisis and a significant barrier to economic recovery.

Besides the short-term measures that have been dealt with by the Federal Government with the States and the National Congress, it is important to revisit the institutionality of fiscal policy for the federated entities. And with this, create new mechanisms that can prevent this situation from repeating itself in the magnitude observed, and at the same time, create mechanisms so that the entities of the federation can create their own solutions.