A new state debt cycle occurred mainly through external and contracted credit operations with federal banks from 2008, after a long period with few loans and debt stock fall. It is argued that exogenous macroeconomic factors were essential in the downward trend of the debt in the early 2000s, creating the necessary conditions (but not sufficient) for the new cycle. It is argued that this process was endorsed by the federal government. This process did not result in a significant deterioration of the relationship DCL/RCL average Brazil, but did not create space for a sharper drop of the relationship between DCL and RCL (which, in the absence of new cycle would be about 0.92 against the relationship of 1.12 actually observed). This text aims to address a lacuna in the literature by presenting the recent state debt evolution and is divided into six sections. After the introduction, there will be a section dedicated to describing the institutional framework. In a subsequent act, the three major state debt refinancing programs will be addressed. In the following section, the recent debt, with emphasis on mechanisms used by state governments to finance, the main creditors and the role of legislation on the subject. Finally, the fifth section deals with debt by state. The concluding remarks summarize the recent state debt cycle, extracting the common denominators to the states and integrating them with the growth of state debt in aggregate terms.
fiscal policy state debt federalism intergovernmental relations