Last Friday, the Brazilian Supreme Court reviewed the dispute that had been decided in August 2024 by the Superior Court of Justice (STJ) and recognized that the Selic rate should be applied to adjust civil debts.
The appeal to the STF was filed after the Special Court of the STJ analyzed the dispute and ruled that article 406 of the Civil Code should be interpreted as meaning that the Selic rate is the applicable rate for adjusting civil debts.
After analyzing the case, STF concluded that:
1. The Selic rate, in effect since 1999 as the main monetary policy instrument, covers both interest and monetary correction, and has been recognized as an adjustment rate by the STF itself in other judgments, such as ADC 58;
2. The application of fixed interest of 1% per month (derived from the combined interpretation of art. 406 of the Civil Code and § 1 of art. 161 of the National Tax Code) would generate economic distortions and result in disproportionate amounts compared to usual financial practices; and
3. The interpretation that identifies the Selic rate as the applicable legal rate is already consolidated in the case law of the Superior Court of Justice (STJ), and there is no reason for change.
Regardless of the outcome of the judgment, the application of the Selic rate is supplementary and should only occur in cases where there is no contractual stipulation to the contrary.
With this Supreme Court decision, which reaffirms and strengthens the understanding already consolidated by the STJ, legal certainty regarding the adjustment of civil debts is reinforced. Validating the Selic rate as a legal adjustment index for these cases, which encompasses both interest and monetary correction, eliminates uncertainty and the possibility of divergent interpretations.
For creditors, this definition represents a more predictable and stable scenario, as it is now possible to plan and calculate the amounts to be received with greater accuracy, provided there is no specific contractual clause that determines another index.
