Traders using resources from the Export Financing Program (Proex) will no longer have to wait for credit approval to ship their goods, the National Monetary Council (CMN) decided in Brasília on Sept 28. According to the Ministry of Finances, the measure aims to prevent exporters from losing the benefit due to bureaucratic delays.
Business owners will bear the risk of the operations. If financing is not granted, the exporter will be responsible for the export costs. Created in 1991, Proex provides financing for Brazilian exports under conditions equivalent to the international market. This practice is authorized by international trade rules.
CMN also set a 60-day deadline for financial institutions operating Proex lines to inform the Banco do Brasil – the program’s responsible agent – of any amounts to be reimbursed to the National Treasury. The sums must be transferred in cases of early loan repayment, default, and changes in the reference rates for financing.
If the deadline is not met, the federal government may prevent new operations from being approved with the financial institution that granted the credit until the issue is resolved with Banco do Brasil. CMN also regulated the possibility of the federal government collecting the owed amounts from financial institutions, both administratively and judicially, in these situations.
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