APPLICATION OF INTEREST AND MONETARY CORRECTION IN PRECATORY DEBTS

Abstract

This study analyzes the application of interest and monetary correction to judicial court-ordered debts, focusing on the changes introduced by Constitutional Amendment No. 113/2021, which established the Selic rate as the official adjustment index. The overall objective is to assess the constitutionality and impacts of this change, considering the principles of fair compensation, equality, and legal certainty. A qualitative, exploratory, and descriptive approach is adopted, based on bibliographic and documentary research, including decisions of the Federal Supreme Court, constitutional and infra-constitutional norms, technical reports, and doctrinal studies. The research is justified by the academic, professional, and social relevance of the topic, given that the adjustment criteria for court-ordered debts directly influence the preservation of creditors' purchasing power and the fiscal balance of public entities. The results are expected to contribute to the legal and economic debate regarding the adequacy of the Selic rate—especially regarding its application in a simple or compound regime—providing insights to improve the effectiveness of court-ordered debt payments and ensure the protection of creditors, especially the most vulnerable, such as retirees and small business owners.