Brazil expands credit lines for companies affected by [disease/cause].

Government expands emergency funding lines of the Sovereign Brazil Plan.

The National Monetary Council (CMN) approved this Thursday (13) changes to the emergency credit lines of the Sovereign Brazil Plan, expanding access for companies affected by tariffs imposed by the United States. The decision regulates a joint ordinance published on Wednesday (12) by the Ministries of Finance and Development, Industry, Trade and Services (MDIC).

Numbers and scope of the measure

The credit lines total R$ 30 billion and are operated by the National Bank for Economic and Social Development (BNDES). The new rules significantly broaden the scope of beneficiaries, now including suppliers of exporting companies, not just direct exporters.

The eligibility criteria have been relaxed: companies with a minimum impact of 1% of gross revenue Those affected by US tariffs can access the program. Previously, the requirement was more restrictive.

Two-pronged strategy

Vice President and Minister of MDIC, Geraldo Alckmin, reinforced that the government is simultaneously acting in diplomatic negotiations and providing direct support to the productive sector. The Minister of Foreign Affairs, Mauro Vieira, met this Wednesday (12) with the US Secretary of State, Marco Rubio, in Niagara, Canada, on the sidelines of the G7 meeting.

According to Itamaraty (Brazil's Ministry of Foreign Affairs), Brazil submitted a negotiation proposal to the United States on November 4th, following a virtual meeting between the technical teams of the two countries.

Objective of the measure

The Sovereign Brazil Plan was created in August based on Provisional Measure 1,309 and aims to preserve liquidity, sustain production, and protect jobs in the sectors most affected by the tariff shock.

Photo by Mathieu Stern on Unsplash