Guedes tells businessmen that the government will launch a R$ 100 billion package in credit

The Minister of Economy, Paulo Guedes, told businessmen this Wednesday (16) that the government will launch a package of R$ 100 billion in credit for MEIs (individual microentrepreneurs) and small and medium-sized companies.

According to the president of Abrasel (Brazilian Association of Bars and Restaurants), Paulo Solmucci, the minister signaled that the new program could be made official as early as next week. “He said he’s ready, he just needs to present it to President Jair Bolsonaro (PL)”, he said.

The indication was given by Guedes at lunch with members of Unecs (National Union of Entities of Commerce and Services) in Brasília.

The strategy includes the renewal of Pronampe (National Program to Support Micro and Small Businesses), which ended at the end of last year, and of the Peac (Emergency Program for Access to Credit), whose contracts took place until December 2020.

To make new hires viable, the idea is to keep the resources contributed to the FGO (Fund Garantidor de Operações), which guaranteed the hiring of Pronampe, and the FGI (Fundo Garantidor para Investimentos), linked to PEAC.

An MP (provisional measure) must be edited by the president providing for this possibility. This is necessary because the law currently provides for the return of a large part of these resources to the Union, according to the flow of payment of installments by borrowers.

The FGO was supplied with extraordinary credit resources, which are outside the spending ceiling, under the justification of facilitating credit to companies affected by the Covid-19 pandemic. The return of resources was planned to guarantee the reduction of public debt.

The government, however, now wants to keep them permanently in the guarantee funds. The justification is that many small and medium-sized entrepreneurs continue to suffer the impacts of the crisis.

The guarantee funds help to cover possible losses of financial institutions. This mainly helps companies that do not have such solid guarantees and, therefore, are left without access to low-cost credit.

The MP must also provide for changes in how much risk is assumed by these funds. In the current format, the amount can cover up to 80% of the loss with operations, which limits the size of credit concessions.

The idea is that the funds now assume 20% of the risk, which will allow for greater leverage from banks. Hence the figure of up to R$100 billion in new loans.

According to a source from the economic area, the package must still be reinforced by Fampe (Aval Fund for Micro and Small Enterprises), which will receive a contribution of around R$ 600 million from Sebrae.

There will also be a microcredit arm to be launched by Caixa, aimed at MEIs and informal people who have their own business. The idea is that the values ​​of these operations are between R$3,000 and R$5,000.

The president of the CNDL (National Confederation of Shopkeepers), José César da Costa, said that the resources are still being studied by the government, but they can help to give survival to the commerce and services sector, which still faces difficulties.

ENTREPRENEURS WANT TO RENEGOTIATE PRONAMPE INTEREST

Entrepreneurs also seek a renegotiation of the conditions of operations contracted in the past under Pronampe.

These loans were signed when the basic interest rate, the Selic, was 2% per year, with an additional rate of up to 1.25% per year. Now, the Selic is already at 10.75% per year, with a high perspective.

“The increase in the Selic to more than double digits burdens those who took these resources a lot. We are really looking for conditions to be able to negotiate this”, said Costa.

According to Abrasel’s Solmucci, Guedes signaled that the Ministry of Economy will also study a solution for those entrepreneurs who are struggling to pay the installments of past financing.

Possible solutions suggested by entrepreneurs include extending the payment period, reducing the amount of installments or increasing the grace period.

According to Abrasel, 20% of bars and restaurants are in default with the Pronampe installments.