June 2, 2020 / 12:32 PM / a month ago

Brazil govt launches new credit line to small companies amid COVID-19

SAO PAULO, June 2 (Reuters) - Brazil’s government has launched a new emergency credit line of 20 billion reais ($3.73 billion) to help small and mid-sized companies deal with the economic fallout from the coronavirus pandemic, according to an official gazette publication on Tuesday.

The program is meant for companies with a gross revenue between 360,000 reais ($67,082.83) and 300 million reais ($55.90 million).

The inclusion of small companies comes amid widespread criticism about difficulties in accessing credit, with financial institutions denying loan requests for fear of default ahead.

The federal government is authorized to increase its participation in the Guarantee Fund for Investments (FGI), managed by state-run development bank BNDES, by up to 20 billion reais, exclusively to cover operations under the emergency credit line. ($1 = 5.3665 reais) (Reporting by Camila Moreira; Writing by Gabriela Mello and Andrea Ricci)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below