R$15 billion credit line released to support Brazilian exports amid international crisis

Amid instability in international markets triggered by the war in Iran, the federal government issued Provisional Measure No. 1,345 on Tuesday (24), creating R$15 billion in credit lines under the Brasil Soberano Plan, managed by the National Bank for Economic and Social Development (BNDES). On the same day, the law establishing the Brazilian Official Export Credit System was also enacted.

The funds will be directed to exporting companies and strategic sectors for the trade balance, especially those affected by geopolitical tensions, such as the conflict in the Middle East and tariffs imposed by the United States.

According to Vice President and Minister of Development, Industry, Trade, and Services, Geraldo Alckmin, the measure aims to ensure competitiveness for Brazilian companies and preserve jobs.

The credit lines may draw on different sources, such as the financial surplus of the Export Guarantee Fund (FGE) and resources from funds linked to the Ministry of Finance, calculated through the end of 2025. Eligible beneficiaries include exporters of industrial goods, suppliers, and sectors relevant to foreign trade.

According to BNDES President Aloizio Mercadante, the initiative covers segments still impacted by high tariffs, such as steel, metallurgy, and the automotive sector, as well as areas like pharmaceuticals, machinery and equipment, and electronics. The program also considers indirect impacts, such as reduced fertilizer supply due to international conflicts.

The financing may be used for working capital, machinery purchases, expansion of production capacity, investments in innovation, and process adaptation. Credit conditions, such as terms and interest rates, will be defined by the National Monetary Council (CMN), while eligibility criteria will be set by the Ministries of Finance and Development.

The new law establishing the Brazilian Official Export Credit System updates rules for export insurance and financing and expands the role of BNDES. Measures include creating a single portal to provide transparency into operations and the annual submission of reports to the Senate.

The legislation also maintains the rule preventing new financing to countries in default, with Brazil, and introduces incentives for operations focused on the green economy and decarbonization. Another change is the extension of commercial risk coverage for micro, small, and medium-sized enterprises, increasing from 180 to up to 750 days in the pre-shipment phase.

Additionally, the law sets guidelines for the operation of the Foreign Trade Operations Guarantee Fund (FGCE) to reduce risks in export transactions.

Source: O Presente Rural

Sharing is caring!