From Monday (23) until the end of the year, states and municipalities will be able to borrow R$1.5 billion in the financial system with a guarantee from the Union. The National Monetary Council (CMN) has rearranged the sublimits to meet the needs of governments locations.
The total credit that public entities (Union, states, municipalities and state-owned companies) can contract in 2024 remains at R$31.076 billion, limit established in January. The reallocations occurred because the space for new credit operations by local governments guaranteed by the Union was exhausted.
With the decision, the sublimit for local government credit guaranteed by the Union, in which the National Treasury covers possible defaults, increased from R$16 billion to R$17.5 billion by the end of the year.
The money came from the reduction of the sublimit for credit operations for works under the New Growth Acceleration Program (New PAC), also guaranteed by the Union, which fell from R$2 billion to R$500 million.
The lack of demand for New PAC venture financing allowed the limits to be rearranged. The resolution will come into force next Monday. At the January meeting, the CMN will define the limit and sub-limits for contracting credit by public bodies in 2025.
