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CMN ends credit limit to local governments in fiscal supervision

States and municipalities that participate in fiscal adjustment or supervision programs conducted by the National Treasury will no longer be subject to lending limits for local governments. The measure was approved today (15) by the National Monetary Council (CMN), which also excluded subnational state-owned companies (state and municipal) with good corporate governance from the limit.CMN ends credit limit to local governments in fiscal supervision

Every year, the CMN sets the limit that the public sector can borrow from the financial system. For 2022, local governments and their state companies can contract up to R$ 18 billion in credit; and the Union, R$ 625 million.

The R$ 18 billion in credit to local governments are distributed as follows: R$ 6.5 billion in operations with a Union guarantee (when the National Treasury covers eventual defaults) and R$ 11.5 billion in operations without a Union guarantee . Local state-owned companies with their own revenues and good governance – such as listing in shares on the stock exchange – were entitled to R$ 1 billion without Union guarantees, but this ceiling was abolished.

The CMN also created its own sub-limits for credit operations by state-owned companies related to the Angra 3 power plant project, but the values ​​were not disclosed.

real estate receivables

The CMN also extended the deadline for financial institutions to register real estate receivables (resources that builders and developers have to receive) given as guarantee in financing for the construction of properties. The obligation, which would be valid from January 1st, was postponed to 120 days after the Central Bank (BC) granted the first authorization to start this type of registration.

In a note, the BC explained that the regulation that governs this activity – of registering real estate receivables – is overdue. “Since there was no conclusion of the aforementioned regulation, due to, among other aspects, the complexity of the matter, it was necessary, given the lack of an institution authorized to receive the real estate registrations, the postponement of the beginning of the obligation previously established”, he informed the organ.

In May 2021, the CMN had edited a resolution that established the beginning of mandatory registrations from January of next year. According to the BC, the requirement is intended to improve the risk management mechanisms of financial institutions and increase transparency so that builders and developers have access to more advantageous credit conditions.


This was the last meeting of the CMN chaired by the Minister of Economy, Paulo Guedes. In a note, the folder released a thank you on his behalf. “The minister is grateful for the commitment of all those who, over the past four years, have participated in the meetings and contributed, directly or indirectly, to the council’s resolutions,” the statement said.

The CMN is a body composed of the Minister of Economy, the president of the Central Bank and the special secretary of the Treasury and Budget of the Ministry of Economy. Starting next year, the body should return to its traditional composition, with the ministers of Finance, Planning and the president of the Central Bank.

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