Ministério da Fazenda lança pacote com 13 medidas para impulsionar crédito e PPPs no país

The Ministry of Finance launched a package of 13 measures to stimulate credit and boost Public-Private Partnerships (PPPs) in the country. Four of them require only changes in decrees or regulations, three are under consideration in the National Congress, and six depend on the issuance of bills.

One of the proposals included in the package changes the “minimum existence”, which is the minimum income of Brazilians that cannot be used to pay debts, such as in consignment loans or blocked by financial institutions.The current minimum existence is R$ 303 (approximately 65 US dollars), but the government wants to increase it to R$ 600 (approximately 130 US dollars).

There are also proposals to authorize the use of resources from open complementary pension plans, personal insurance, and capitalization titles as collateral for loans. The government’s economic team expects the package to expand credit markets, cut costs and interest rates, and stimulate investment.

“It is a battery of measures to promote credit and investment, providing greater legal and financial security, creating conditions for a country with increased investment, job creation, and income,” said the National Treasury Secretary, Rogério Ceron, during the press conference presenting the package.

The 13 proposals are as follows:

1. Offer the Union’s guarantee in PPPs of states and municipalities.
2. Expand incentivized debentures.
3. Approve the new Guarantees Act.
4. Approve the Legal Framework for Private Insurance.
5. Authorize guarantees with pension resources.
6. Simplify and streamline credit.
7. Simplify access to fiscal data.
8. Flexibilize authorization for banks and digital currency.
9. Improve the Bank Resolution Regime.
10. Regulate the Law on Overindebtedness.
11. Improve mechanisms to protect investors in the capital market.
12. Improve financial market infrastructure.
13. Expand the range of cooperative insurance activities.

The goal of the measures is to boost the country’s economic growth, job creation, and increase investment opportunities. The Ministry of Finance believes the package will promote legal and financial security, providing conditions for a country with increased investment, job creation, and income.

The first proposal aims to authorize loan operations for states and municipalities to have the Union’s guarantee to enable PPPs. This measure could increase the availability of financing for infrastructure works, logistics, and public services in municipalities.

The second measure is to expand incentivized debentures. Debentures are a fixed-return security issued by corporations to raise funds in the capital market. By being incentivized, they have reduced taxation, stimulating more investment in these securities.

The third measure is to approve the new Guarantees Act, aimed at improving the legal framework that regulates collateralization in financial operations, facilitating the granting of credit.

The fourth measure is to improve the legal framework for private insurance, increasing competitiveness in the sector, and expanding the range of insurance products and services.

The Government aims to drive greater leveraged lending to low and middle-class workers. This measure aims to allow guarantees with pension resources, whereby resources from open complementary pension plans, personal insurance, and capitalization titles could be used as collateral for loans.

There are several other measures that seek to promote less bureaucracy and streamline processes. Simplifying access to fiscal data and flexibilizing authorization for banks and digital currency are some examples of such measures.

This new package is the latest set of measures taken by the Federal Government to boost the Brazilian economy. The measures are expected to usher a wave of new investment opportunities for Brazilian businesses, with the hope of creating more jobs and increasing income levels.

Overall, the government expects these measures to boost the country’s economic growth and increase investment opportunities across various sectors of the economy, leading to job creation and increased income levels for Brazilians.