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Brazil to strengthen legal defense interests with IDB support

A loan for $17.1 million will help achieve greater and more effective legal action of the State’s interests 

Brazil will modernize the Office of the Attorney General (AGU) to help achieve greater and more effective legal defense against lawsuits by all government entities—at a state as well as federal level—in a program supported by a $17.1 million loan from the Inter-American Development Bank (IDB). 

The objectives of the program include reducing the rate of unfavorable judgments in lawsuits by half, from almost 59 percent now to 30 percent. This will cut damages ordered by courts in lawsuits against the State. 

In addition, the project will increase the percentage of the total sum of State assets subject to claims that are recovered―including agreements and public civil actions―from 7.5 percent to 22 percent by 2016. 

The AGU is the institution that, directly or through associated bodies, provides legal representation for the State, governmental agencies, and public federal foundations. 

Another program objective is to more effectively manage judicial processes through a results-based system of indicators, targets, and assessments for monitoring adjudicated claims and risks to the State. The judicial management system will be strengthened to increase its ability to collect claims and recover assets. 

In addition, the project will improve the quality of legal counsel and advisory services provided by AGU attorneys and prosecutors. 

The IDB loan was granted through the Bank’s flexible financing facility with a single payment due May 15, 2028 and an interest rate based on LIBOR. The local counterpart contribution will be $25.7 million.

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