Proex program approves pre-shipment financing for Brazilian exports

Brazilian exporters can now finance sales abroad up to six months before shipment, thanks to a recent expansion of the Export Financing Program (Proex) approved by Brazil’s National Monetary Council (CMN) on Wednesday (26). Previously, financing was only available post-shipment, with credit released after proof of shipment or service billing. The new measure allows disbursement up to 180 days before export, with the requirement that the export be proven within 15 days of the date set out in the approved timetable. Financing will begin at the time of disbursement, not at the time of export.

The Ministry of Finance stated that this type of financing will help companies with limited access to other credit sources before shipment. However, exports already covered by other financing (pre- or post-shipment) or with advances received by the exporter will not be eligible for pre-shipment financing from Proex.

If the export is not proven by the scheduled date, if the exported goods or services are not manufactured or provided by the exporter, or if the exporter fails to present or falsifies the required documents, the financing will be suspended, and the exporter must reimburse the corrected amounts to the Union. Additionally, if mischaracterization of the operations exceeds 15% of their total amount, the exporter will be barred from contracting with Proex for five years.

According to the Ministry of Finance, pre-shipment financing will not increase National Treasury expenses, as the resources will come from the amounts already allocated in the General Union Budget for Proex Financing.

Created in 2001, Proex supports Brazilian exports of goods and services by providing financing under conditions equivalent to those practiced in the international market.

Source: Agência Brasil

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