Put Andre Jerusalem and Marcos Buzo – 26/03/2020
The National Bank for Economic and Social Development (“BNDES”) announced on March 22, 2020, its first measures to contain the impact of the coronavirus on the Brazilian economy.
In total, BNDES will release R$55 billion as follows:
- Transfer of R$20 billion from PIS/PASEP to FGTS (there is still no definition of who will benefit from the measure, nor the percentage that can be withdrawn by the worker);
- R$ 19 billion for operations carried out directly with BNDES, with full suspension of interest and principal for a period of 6 (six) months, capitalization of the outstanding balance and limitation of dividends to the legal minimum;
- R$ 11 billion for suspension of payments via indirect operations, with full suspension of interest and principal for a period of 6 (six) months, capitalization of the outstanding balance and maintenance of the total term; and
- R$ 5 billion to expand credit for companies with annual revenue until R$ 300 million, limited to R$ 70 million per customer and with a grace period of up to 24 (twenty-four) months.
The BNDES therefore aims to provide breathing space for companies' cash flow and working capital, in addition to boosting consumption by releasing FGTS funds.
We will monitor the effects of these measures on the economy, especially in the granting of credit lines through financial agents. Additionally, we remain available to assist our clients who need to investigate credit options and business restructuring due to the current impacts on the economy.