Credits can be contracted until December 31 of this year
The government created the Working Capital Program for the Preservation of Companies (CGPE). It is to help entrepreneurs to face the scenario of economic difficulties resulting from the pandemic of the new coronavirus (covid-19).
According to the provisional measure that instituted the new tool, the credit lines may be contracted until December 31 of this year. However, for banks to start offering credit, there still needs to be regulation by the National Monetary Council (CMN).
Companies with annual sales of up to R$ 300 million will have another line of credit to help face the difficulties generated by the pandemic. Provisional Measure No. 992/2020 was published in an extraordinary edition of Official Diary of the Union of July 16.
Concession potential
According to the Central Bank (BC), the estimate is that the new program has the potential to increase the granting of credit to micro and small and medium-sized companies by R$ 120 billion, "with the risks and resources fully borne by the financial institutions".
The BC pointed out that the new program “complements and assists previous measures to combat the economic effects of covid-19, generating new incentives for access to credit for companies with revenues of up to R$ 300 million, the so-called micro-companies and small and medium-sized companies. midsize."
"Despite the issuance of several measures to combat the effects of covid-19 on the real economy, the credit channel has started to lose strength recently, affecting mainly micro and small and medium-sized companies," added the BC.
According to the General Secretariat of the Presidency of the Republic, banks and institutions that grant loans under this new line of credit may use part of their losses to have a tax benefit in the payment of Income Tax and Social Contribution on Net Income ( CSLL).
The secretariat added that these rules will also be applied to existing emergency credit lines - National Support Program for Micro and Small Enterprises (Pronampe), Emergency Employment Support Program (Pese) and Investment Guarantee Fund (FGI).
"The operation will be simplified and will not require specific counterparts, which should meet the needs of countless companies that did not qualify for the previous credit lines", added the General Secretariat of the Presidency of the Republic.
Shared warranty
Another measure envisaged in the MP is the possibility of offering the same asset to guarantee more than one credit operation (fiduciary sale with share of the asset). With that, explained the General Secretariat, respecting the total value of the asset, the same property, for example, can serve as a guarantee for more than one credit operation before the same creditor, which should reduce the interest for the borrower .
“With the gradual reduction of the ratio between the balance due and the amount of the guarantee in the credit operations guaranteed by the property, as the installments are paid, there is room for new credit operations to be contracted based on the same guarantee of the ongoing operation, according to the borrower's need and interest ”, explained the BC.
He added that this sharing of the asset as a guarantee should generate longer terms and lower interest rates for customers. “The advantage of sharing fiduciary alienation for more than one credit operation is that, due to the quality of this type of guarantee, new operations tend to be contracted at terms and interest rates more favorable to the borrower, when compared to other types of credit without guarantee ”, highlighted the BC.
Sale of securities to BC
The MP also dispenses with the requirement for the presentation of documentation proving regularity before the Public Power by those interested in carrying out transactions for the sale of a private security to the Central Bank in the manner provided for in article 7, item II, of Constitutional Amendment No. 106, of 7 May 2020.
“The measure aims to give effectiveness and agility to carrying out operations, aimed at the prompt confrontation of the national public calamity [pandemic], and its impacts on the economic system, to the benefit of the real productive sector, employment and the income of the worker. In view of the urgency in adopting actions that minimize the economic effects of the pandemic, other measures provided for the same exemption from the verification of such regularity, as in the case of Provisional Measure 958, of April 24, 2020 [relaxed rules for renewal or contracting of credit in public banks] ”, says the BC.
Source: Portal Abes with Agência Brasil
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