Rio de Janeiro joins Propag, cutting state‑federal debt payments by up to R$ 3 billion annually

President Luiz Inácio Lula da Silva and interim governor Ricardo Couto signed Rio de Janeiro’s accession to the Programa de Pleno Pagamento de Dívidas dos Estados (Propag) on 22 June at the Palácio Guanabara. The agreement trims the state’s debt with the Union from about R$ 210 billion to roughly R$ 168.5 billion, eliminates the real‑interest charge and lowers the monthly payment from around R$ 490 million to about R$ 113 million.

The federal government estimates an immediate fiscal relief of R$ 3.1 billion for 2026, translating into more than R$ 40 billion of savings over the life of the program. In return, Rio must allocate 1 % of the restructured debt balance to priority areas such as education, professional training, infrastructure and public safety, with a minimum of R$ 900 million earmarked for social investments in 2026 and R$ 2.2 billion in 2027.