The CMN (National Monetary Council) on Thursday (13th) approved the expansion of an emergency loan facility for companies affected by the tariffs imposed by the United States on Brazilian products.
Under the new rules, exporters’ suppliers will also be eligible for loans. Rules linking the company’s credit rights to a percentage of its export earnings were also relaxed.
“This measure is aimed at preserving liquidity, sustaining production and protecting jobs in sectors most exposed to external tariff shocks,” the Treasury said in a note.
According to the ministry, by June 2025, suppliers will be eligible for financing if at least 1% of their revenue is generated by supplying products to exporting companies, as long as these exporters have at least 5% of their revenue affected by the tariffs.
“This expansion aims to alleviate bottlenecks in the production chain and ensure that the impact of the emergency line is felt throughout the chain,” he added.
The resolution also lowers the minimum percentage of export-related revenue affected by tariffs from 5% to 1% in order to provide credit to exporting companies.
According to the ministry, the remuneration rate for the Export Guarantee Fund (FGE) ranges from 1% to 6% annually, depending on the size of the company and the purpose of the loan.
Created in August after the United States imposed 50% tariffs on a range of Brazilian products, the credit lines affected by these adjustments amount to a total of 30 billion reais.
This resolution takes effect immediately and will be implemented by BNDES (National Bank for Economic and Social Development) and other authorized financial institutions.
The CMN is made up of Central Bank Governor Gabriel Garipolo, Finance Minister Fernando Haddad and Planning and Budget Minister Simone Tebet.
About The Author
