The Brazilian Development Bank (BNDES) will hold a new round of temporary suspension of loan payments, fulfilling its mission of supporting Brazilian companies to overcome the crisis. At this time, the beneficiaries will be all micro- and small-sized entrepreneurs from the most diverse economic sectors that have taken out loans through accredited financial institutions.
As in previous rounds, the suspension period will be up to six months. The new round also brings the unprecedented possibility of extending the total financing period by up to 18 months, which was not foreseen in the suspension offered last year.
As the effects of the Covid-19 pandemic on the Brazilian economy continue in 2021, BNDES decided to offer again the possibility for companies to suspend the payment of installments of their loans, explains Bruno Laskowski, director of Equity, Capital Markets and Indirect Credit. “Micro- and small- businesses can count on this relief in their accounts, and with that, we believe they will increase their chances of overcoming the crisis and saving jobs.”
It is estimated that more than 100,000 companies may have their payments suspended, for a potential R$ 2.9 billion. Operations contracted as long-term interest loans may have the deadline extended by up to 18 months.
BNDES has already made a similar solution available in 2020. The practice of suspension of payments, known in the market as standstill, had two rounds last year, totaling R$ 3.1 billion in automatic indirect loan payments suspended, benefiting almost 29,000 companies that hire 2.5 million workers.
The suspension of benefits should be negotiated by the entrepreneur directly with the financial agent that granted them the original financing. Requests can already be made starting today (April 29th).
Loans taken from the Emergency Credit Access Program (Peac) or any other programs that have any guarantee fund or economic subsidy are not eligible in this standstill round; loans taken for business involving foreign trade or contracted by the public administration are also not eligible and the same is valid for agricultural debts already renegotiated.
About BNDES – Founded in 1952 and currently linked to the Ministry of Economy, BNDES is the main instrument of the Federal Government to promote long-term investments in the Brazilian economy. BNDES’s actions focus on the socioenvironmental and economic impact in Brazil. BNDES offers special conditions for micro-, small- and medium-sized enterprises, as well as social investment lines, directed at education and health, family agriculture, sanitation and urban transport. In crisis situations, BNDES acts in an anticyclical manner and assists in the formulation of solutions for the resumption of economic growth.