Brazilian archdiocese takes over university to solve debt crisis

Published: 2006-03-08

SAO PAULO, Brazil (CNS) -- The Archdiocese of Sao Paulo has taken over the administration of the Pontifical Catholic University of Sao Paulo and fired 30 percent of its teaching staff to try to reduce a monthly deficit of more than $1.8 million. The university, although independent, has a foundation linked to the archdiocese as its main financial partner. Since the 1970s the university has accumulated a debt of $37 million, but the situation deteriorated at the beginning of the year when the university's foundation renegotiated the institution's loans. The agreement called for a reduction of $1.8 million in the university's monthly payroll. The university opened up a voluntary job-termination program, but did not have enough volunteers to meet its reduction goal. Although the archdiocese would not comment, local news media reported that Sao Paulo Cardinal Claudio Hummes had a meeting with Brazilian President Luiz Inacio Lula da Silva in February and asked the federal government for help in finding a possible solution to the crisis.

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