Minister of Finance, Fernando HaddadPaulo Pinto / Agência Brasil
Published 04/26/2024 10:40 | Updated 04/26/2024 10:41
The Minister of Finance, Fernando Haddad, defined through an ordinance that financial institutions, with the exception of credit cooperatives and consortium administrators, will be able to take advantage of the presumed credit provided for in the Believe Program “for operations that have been in default for more than ninety days from the effective date of Provisional Measure No. 1,213, of April 22, 2024”.
The provision authorizes that the value renegotiated until the end of this year, of defaulted debts until the publication of the MP, can be counted for the calculation of banks’ presumed credit in the years 2025 to 2029. “This means that banks will be able to increase their level of capital for granting loans”, stated the Treasury in a note. “A mechanism will be created to encourage banks to renegotiate the debts of small companies, and companies will have the opportunity to pay their debts under better conditions, with greater discounts, terms, among others that can be negotiated with the banks”, he added.
The Treasury explained that this incentive does not generate any expenses for 2024, and in the coming years the maximum estimated cost in tax waivers is very low, in the order of R$ 18 million in 2025, only 3 million in 2026, and at no cost to the government in 2027.
The MP established that banks that renegotiate, until December 31, 2024, debts of companies with revenues equal to or less than R$4.8 million may be entitled to the determination of presumed credit in a total amount limited to the lowest of the following values: o gross accounting balance of credit operations for debt renegotiation or the accounting balance of credits arising from temporary differences.
The Treasury still needed to define the eligibility rule for which debts banks could consider to benefit from the benefit, which is formalized in this Friday’s ordinance, that is, the stimulus will cover “operations that have been in default for more than ninety days”, counting from the last April 23, date of entry into force of the Believe Program MP.
