BRASILIA, Nov 27 (Reuters) - Brazil's government will pardon about half of the roughly 14 billion reais ($2.6 billion) in debt owed to it by Brazilian telecom firm Oi SA, the country's solicitor general said on Friday.

Oi, which has been working to emerge from bankruptcy protection for years, had accumulated gargantuan fines tied to quality of services and other regulatory demands, making telecoms regulator Anatel one of the company's biggest creditors.

The settlement, with the remainder of Oi's government debt payable in installments, puts an end to 1,700 ongoing court cases between Oi and Anatel, said the solicitor general, known as AGU for its Portuguese initials.

($1 = 5.33 reais) (Reporting by Ricardo Brito Writing by Gram Slattery; Editing by Tom Brown)