Foreign Ministry Requests More Than R$800 Million to Cover Its Debts

05/18/2016 - 10h02

The Foreign Ministry has informed the Ministry of Planning that it needs more than R$800 million (US$229 million) to cover its debts. The total budget of the ministry is R$2.98 billion (US $854 million).

This figure, calculated in a survey conducted by the new foreign minister, José Serra, takes into account debts left behind by the Rousseff administration. There are problems with the transfer of funds to consulates, payments to assistants to diplomats and delays in the salaries of staff hired abroad.

As Folha has learnt, there has been a fall of more than 40% in the value paid to some consulates from January to April this year, compared with the same period in 2015.

Serra discussed the survey with the minister of Planning, Romero Jucá, on Monday (16). Jucá has received similar reports from other areas in the government.

Nearly 90% of the Foreign Ministry's budget goes on expenses abroad, which are calculated in dollars. The decline of the real, which lost 33% of its value last year, has exacerbated the scarcity of resources.

The survey takes into account all debt relating to the Foreign Ministry's budget. It excludes debts of the Brazilian government with international institutions, which are the responsibility of the Ministry of Planning.

On July 31 2015, according to the most recent official figures available, Brazil owed R$2.4 billion (US$688 million) to international institutions (figures adjusted to the current exchange rate). R$550 million (US$158 million) of this is owed to the UN.

On April 30 this year, the debt with the UN had inflated 75% to R$960 million (US$275 million), according to the UN's financial report, published in May. This makes Brazil the second largest debtor to the organization, after the United States.

As a last resort, Brazil's failure to pay its debts with the UN could result in its exclusion from negotiations.

Translated by TOM GATEHOUSE

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