Brazil: Public financing for the production of goods for exports by small and medium companies (pre-shipment phase)
Companies with gross annual income up to R$ 60 million will be able to obtain credit from the Export Financing Program - PROEX for the production of goods destined for export.
PROEX is a public program for the financing of exports of goods and services. It is operated by Banco do Brasil and its funding comes from the National Treasury.
The new measure was published in Resolution CAMEX nº 45, on the 26th of August, 2009, and it enlarges the previous scope of the PROEX since it finances the pre-shipment phase, while previously PROEX covered only the post-shipment phase.
PROEX has earmarked 10% of its budget, US$ 130 million, for this program (Valor Econômico, 27th August, 2009). The program will finance up to 100% of the invoice value of the product to be exported. Under Article 2 (e) of Resolution nº 35, the interest rate to be applied is the rate prevailing in the international market.
Any Evidence-Based Deliberation:
|Is there anything in the public record to suggest that evidence of the effectiveness of the proposed measure was considered during official deliberations?||No|
|Is there any evidence that alternatives to the proposed measure were considered?||No|
|Is there anything in the public record that suggests that empirical evidence informed the comparison across the alternatives available to government?||No|
|Was such evidence identified?||No|
|Is such evidence publicly available?||No|
|Did the official decision-maker in question provide an explanation as to why a chosen measure was favoured over alternatives?||No|
|Is there any evidence to suggest that potentially affected trading partners were consulted before the measures were taken?||No|
|Is there any evidence that safeguards have been put in place to ensure that implementation of the initiative is transparent and non-discriminatory?||No|
|Did the government state its intention to review the measure within one year of implementation?||No|
Date Discovered: 01/09/2009
Date of inception: 26 Aug 2009
GTA Evaluation: Amber
1. Valor Econômico. Proex financiará pré-embarque de pequena empresa. 27/09/09;
2. MDIC Press Release. Camex cria Proex Financiamento para micro, pequenas e médias empresas. 26th August, 2009: http://www.mdic.gov.br/sitio/interna/noticia.php?area=1¬icia=9271
3. Law nº 11.499, published the 28th of June, 2007. (establishes the pertinent rules for the financing);
4. Resolution CAMEX nº 45, published the 26nd of August, 2009 (establishes the guidelines for the utilization of PROEX);
5. Portaria MDIC nº 232, published on the 12th of December, 2007. (contains list of products which are eligible for financing under PROEX).