More than a year after the sanction of law which created the National Social Infrastructure Investment Fund (FIIS), the National Monetary Council (CMN) regulated the conditions for loaning resources. In an extraordinary meeting, the body defined the deadline, grace period and interest for the fund’s financing.
With R$10 billion available in the 2025 Budget, the FIIS intends to expand investments in health, education and public security. The fund will be operated by the National Bank for Economic and Social Development (BNDES), which will be able to accredit financial institutions to lend the resources.
The CMN ratified the conditions recently defined by the FIIS Management Committee, which are as follows:
- Term: 20 years of payment;
- Grace period: 24 months, with the borrower starting to pay after this period;
- Interest: 5% per year, for operations lasting up to 10 years, and 7% per year, for operations over 10 years, interest will not apply during the grace period;
- Remuneration of financial agents: 3.38% per year for public banks, 4.35% for the private sector and 1.25% per year for BNDES indirect operations. When the financial agent is accredited by BNDES, the remuneration will be 6% per year
The resources will be lent in accordance with the FIIS Resource Application Plan for 2025, approved by the fund’s Management Committee in September. According to the plan, investments in public health care, primary and specialized, in the health area, and in the universalization of early childhood education, primary education and secondary education will have priority.
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No impact
In a note, the Ministry of Finance informed that the financing regulation does not have an additional fiscal impact on National Treasury spending. This is because the financing is refundable; and default risks are fully assumed by financial institutions.
According to the ministry, the regulation takes place urgently to guarantee the execution of the resources provided for in the 2025 Budget and ensure a quick response to priority social demands.
Chaired by the Minister of Finance, Fernando Haddad, the CMN is also composed of the president of the Central Bank, Gabriel Galípolo, and the Minister of Planning and Budget, Simone Tebet.
