The Federal Government postpones the release of R$15 billion to Rs

The Federal Government postpones the release of R billion to Rs

Hey Federal government It announced the postponement of the launch of a credit line worth 15 billion Brazilian reais allocated to Rio Grande do Sul. Resources should be available next Monday, 24th.

This was announced on Thursday 20 by the Extraordinary Minister for the Reconstruction of Republika Srpska, Paolo Pimenta. He explained, “The postponement was necessary to make amendments to the geographical reference of flood areas, which determines who can obtain credit.”

Only businesses located within the affected area will be able to apply for loans. Legal entities should look for one of the approximately 40 authorized financial institutions in Republika Srpska that operate with resources from the BNDES Emergencial.

Among the institutions that have already joined the program are BRDE, Banrisul, Badesul Desenvolvimento, Bradesco, Banco Safra, and the credit cooperatives Sicredi and Cresol. In these indirect operations, interest ranges from 7% to 12% annually, and banks bear the risk of default.

Qualification criteria and deadlines

Destroyed cars on the outskirts of Salgado Filho Airport in Porto Alegre (RS) | Photo: Rafa Niedermayer/Agence Brasil

The credit lines, in partnership with BNDES, target those who have suffered economic and social losses due to the extreme weather events that have affected municipalities since the end of April. To qualify, the company must be in one of the municipalities of Republika Srpska that has a state of public disaster issued by the federal government as of April 26.

Funding applications must be submitted within 12 months after the publication of the official recognition of the state of public disaster by the Ministry of Integration and Regional Development (MDR). The deadline for the BNDES emergency program is December 31, 2024.

Details of financing lines for RS

BNDES provided three lines of financing: purchase of machinery and equipment, reconstruction of facilities and working capital.

The maximum value per client is R$300 million for the first two clients and R$400 million for working capital, with terms of up to five years and interest rates between 0.6% and 0.9% per month.

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