Move Brasil: government authorizes up to R$30 billion in credit for app drivers and taxi drivers
Order from Minister Dario Durigan, published in this Thursday's DOU, provides for an addendum with the BNDES to manage the resources.
BY THE X-TRADER NEWS NEWSROOM · REPORTING FROM MONEY TIMES · 2 MIN
The government authorized up to R$30 billion in financing lines for app drivers and taxi drivers. According to Money Times, the decision was made within the scope of the Move Brasil program and opens up space for one of the largest volumes of credit targeted at this audience ever announced.
Minister Dario Durigan's order was published in the Official Gazette of the Union on Thursday, October 29th. According to the text, the Treasury authorizes an addendum with BNDES for the bank to manage the resources, according to Money Times.
The legal basis is Provisional Measure No. 1,359. The modality is refundable credit for the purchase of new vehicles, with environmental, social and economic sustainability criteria. In other words, the borrower receives the resource, needs to return it and only has access to the line when purchasing a new car.
Authorization was only granted after favorable opinions from the National Treasury Secretariat and the PGFN. This technical endorsement is the point that draws the most attention from those who follow public accounts, because it indicates that the areas responsible for the Union's cash flow and legal defense did not point out any impediments.
For a newspaper that defends fiscal responsibility, the central question in programs of this type is who bears the cost if the financing is not repaid and how much the taxpayer pays for subsidized credit. The ceiling of R$30 billion is the authorized limit, not an amount already disbursed, and execution will depend on what is contracted by BNDES.
What changes for the investor
The most direct effect would be on the demand for new vehicles, as the line requires the purchase of a new car. There is still no data on the volume of contracts, terms or rates, so any impact on the automotive sector and credit is a hypothesis to be monitored. It is worth observing the progress of the agreement with BNDES, the contracts actually released and the final cost of the program for public accounts. This article is not a recommendation to buy or sell any asset.
Automatically translated from Portuguese.
