RIO DE JANEIRO, BRAZIL – Brazil’s National Bank for Economic and Social Development (BNDES) on Thursday, April 29th, announced a temporary suspension of loan collection actions.
The focus this time will be on micro and small enterprises from diverse economic sectors that have taken out loans through accredited financial institutions.
The respite in payments will span up to 6 months, while extending the overall financing term by up to 18 months is also a possibility, which was not provided for in last year’s suspension offered.
BNDES estimates that over 100,000 companies may have their payment obligations suspended, in a potential total value of R$2.9 billion (US$540 million), in operations contracted based on the Long Term Interest Rate (TLP).
A similar solution was offered in 2020. The practice of suspending payments, known in the market as “standstill”, involved two rounds last year, totaling R$3.1 billion in suspended payments of automatic indirect financing, benefiting almost 29,000 companies with 2.5 million workers.
The suspension of installments must be negotiated by the entrepreneur directly with the financial agent (bank) that granted the original financing. Requests can be made as of Thursday, April 29th.
This suspension does not include loans taken out under the Emergency Program for Access to Credit (PEAC) or any others that have a guarantee fund or economic grant; those taken out for businesses involving foreign trade or contracted by the public administration; and agricultural debts that have been previously renegotiated.
Source: Metropoles