CNJ cancels billions in irregular Brazilian court debts

The National Council of Justice (CNJ) has ordered the cancellation of R$ 2 billion in irregular court-ordered debts, known as precatórios, issued against the Brazilian federal government. This decision, made by National Justice Corregidor Minister Benedito Gonçalves, follows a request by the Attorney General's Office (AGU) to extend a previous ruling that had already canceled R$ 4.7 billion in similar titles.

The irregular debts involve the sugar and alcohol sector and were reportedly purchased by Banco Master. Investigations suggest the titles were issued before the final judgment of the execution phase, a practice deemed illegal by the CNJ. The case has drawn scrutiny following reports of a R$ 427 million contract between Banco Master and a law firm linked to a federal judge's spouse.

Additionally, the AGU secured the restitution of approximately R$ 2.36 billion to the Union. The legal dispute involves various sugar mills and has connections to banker Daniel Vorcaro. The broader implications of these judicial debts and state liability are currently being discussed by the Supreme Federal Court (STF), with potential impacts reaching R$ 103.4 billion.