In the face of climate tragedies, CMN increases debt limits for states and municipalities

[ad_1]

Resolution increases the annual limit for credit operations by up to R$5 billion in 2023. CMN is made up of Ministers of Finance and Planning, and the President of the Central Bank. The government decided this Thursday (26) to increase the limit for states and municipalities to take out loans by up to R$5 billion this year. The decision was taken through the National Monetary Council (CMN). According to the Ministry of Finance, the measure favors municipalities affected by climate tragedies, which will be able to contract new credit operations. In practice, however, other municipalities and states will also be able to benefit from the measure. “This change will open space for municipalities affected by extreme weather events that recently significantly affected some states in the country, such as Amazonas, Santa Catarina and Rio Grande Sul, to contract operations in this modality”, he explained in a note. Effective in November The increase will only be for loans without Union guarantee. The new limits come into force on November 1st. Drought in the capital of Amazonas is the worst in the last 120 years. Matheus Castro/g1 With this Thursday’s resolution, the total authorized for this type of operation in 2023 reaches R$18 billion. The CMN is a collegial body chaired by the Minister of Finance, Fernando Haddad, and composed of the president of the Central Bank of Brazil, Roberto Campos Neto, and the Minister of Planning and Budget, Simone Tebet. Among the CMN’s functions is to define the annual limits for contracting credit operations with the public sector, specifying the maximum amounts that can be contracted in credit operations with and without Union guarantee.

[ad_2]

Source link