Amazonas government cleared to proceed with R$ 1.4 billion loan process

A federal judge has authorized the Government of Amazonas to proceed with administrative procedures for a R$ 1.4 billion loan. The decision by Desembargador Newton Ramos of the Federal Regional Court of the 1st Region (TRF1) lifts a previous injunction that had halted the operation.

The loan was previously suspended by the 3rd Federal Civil Court of the Amazonas Judicial Section following a popular action. The prior ruling had prohibited the State, Banco do Brasil, and the Union from formalizing the financing or providing guarantees, imposing a daily fine of R$ 200,000 for non-compliance.

This new decision does not constitute final approval for the loan but allows the administrative process to continue. It enables the Ministry of Finance to potentially issue and publish the authorization for the operation and the granting of the Union's guarantee. This provisional authorization remains valid until the natural rapporteur of the appeal at TRF1 reviews the case to ratify, modify, or revoke the decision.