States, municipalities and the Federal District (DF) may obtain contractual advantages in financing granted by the National Bank for Economic and Social Development (BNDES). The possibility open to the public sector was approved today (27) by the bank and aims to improve the quality of public education in the short term.
In order to be entitled to a reduction of up to 0.4% in the bank’s basic remuneration rate or an extension of the grace period by up to 12 months, customers must demonstrate advances in educational indices within up to 34 months. According to BNDES, the new policy was made possible with the creation of the Linked Loan Education regulation for Credit Operations with the Public Sector, approved by the institution.
The incentives will be available for new contracts with public entities, regardless of the nature of the project to be financed, that is, it is not necessary to be a financing contract focused on education. Even if the credit is intended for other areas, such as sanitation, urban mobility or public management, for example, the benefit can be obtained as long as the client reaches the contractually established goals for the educational indicators.
The performance of the states will be measured by the evolution of the pass rate and by the reduction of school dropout in the 1st grade of secondary education. The performance of municipalities will be determined by the increase in enrollments in day care centers and the proportion of full-time enrollments in preschool, using the School Census as a basis. The Federal District, in turn, will be able to use all these indicators, since it has the powers of states and municipalities in relation to educational policies, clarified the BNDES.
In order to obtain the contractual advantages, the bank will require that the targets be met within 34 months to induce short-term actions. The public entity will not be allowed to change the approval policy, nor automatic approval. Measurements will be made based on the pre-covid-19 pandemic period.
BNDES explained that, during the analysis phase of the operation, the client may choose between the contractual benefit of reducing the basic remuneration or increasing the grace period of the financing. If you meet one of the two established targets, you will have the benefit of a 0.2% reduction in basic remuneration or an extension of the six-month grace period. If both targets are met, the reduction will be 0.4% or the grace period will increase for 12 months.
According to the BNDES’ board, the initiative is in line with the priority given by the institution to basic education, in order to contribute to improving the quality of education by reducing educational inequalities in the country and, at the same time, increasing efficiency. and the effectiveness of management in public networks.