The estimate is that more than 200 thousand operations will be approved in the next 18 months. (Image: Fernando Frazão/ Agência Brasil)
O National Bank for Economic and Social Development (BNDES) will make available from October 1st an additional R$100 billion in credit under the Emergency Credit Access Program (FGI PEAC), the development bank said this Sunday (29).
The estimate is that more than 200 thousand operations will be approved in the next 18 months. The program is mainly aimed at investment and generation of employment and income for micro, small and medium-sized companies in the country.
“The leveraged resources do not involve disbursements from the Union. They result from low default rates (5.7% until September 2024), lower than the limit foreseen in operations contracted in 2020. In that year, when the program was launched, the limit of Default coverage was 20% for medium and large companies and 30% for small companies”, the BNDES said in a note.
The program was created in 2020 amid the negative effects of the covid-19 pandemic on companies and the productive sector. The FGI PEAC was designed to expand access to credit for individual microentrepreneurs and micro, small and medium-sized companies in the country.
It acts as a guarantee program that reduces the risk of default for the financial institutions granting the loan, which have more security to lend.
“With the good performance of FGI PEAC, almost half of the 40 financial agents that contracted guarantees from the program in 2020 opted to waive around 9 billion reais in limit for guarantee coverage, which made it possible to leverage the 100 billion reais” , informed the bank.