IMPLEMENTATION LEVEL

NFI

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

firm-specific

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 01 Jan 2013 | Removal date: open ended
Still in force

State loan

On 6 December 2012, Brazil's government decided to extend its Investment Support Program (PSI) through 2013 with BRL 100 billion (USD 47.6 billion) to back subsidised loans for capital goods (e.g., machines, equipment). The goal of the program is to stimulate the production, acquisition and (most importantly for these purposes) the export of capital goods and technological innovation in Brazil.
 
The total financial backing amounts to BRL 312 billion now. The financing is provided by the Brazilian Development Bank (BNDES, BRL 85 billion) and private banks (BRL 15 billion). The loans will be payable over a 10-year period and be made available at an interest rate of 3 per cent in the first half of 2013 and 3.5 per cent in the second half the year. In the meantime, the provisory measure (medida provisória) from 6 December 2012 has been transformed into law no. 12.814 of 16 May 2013.
 
The Brazilian Development Bank provides credits with below-market interest rates to legal persons (private or public) with headquarters and administrations in Brazil.In the case of companies with headquarters abroad, majorityshareholders (private or public) need to have residence in Brazil. Besides this, the bank imposes local content requirementson goods (mainly capital goods), services and software. However, itmakes exceptions when there is no national production of those goods.
 
The GTA includes state guarantees and other financial incentives that are likely to affect the restructuring and performance of firms facing international competition, whether from imports, in export markets, and from foreign subsidiaries.

AFFECTED COUNTRIES

MAP
TABLE
EXPORT

AFFECTED SECTORS AND PRODUCTS

441 Agricultural or forestry machinery & parts
8701 Tractors (other than tractors of heading 87.09).
870110 Pedestrian controlled tractors
870130 Tracklaying tractors
870190 Other
444 Machinery for mining, quarrying & construction; parts
8704 Motor vehicles for the transport of goods.
870410 Dumpers designed for offhighway use
491 Motor vehicles, trailers & semi-trailers; parts
8701 Tractors (other than tractors of heading 87.09).
870120 Road tractors for semitrailers
8702 Motor vehicles for the transport of ten or more persons, including the driver.
870210 With compressionignition internal combustion piston engine (diesel or semidiesel)
870290 Other
8704 Motor vehicles for the transport of goods.
870421 g.v.w. not exceeding 5 tonnes
870422 g.v.w. exceeding 5 tonnes but not exceeding 20 tonnes
870423 g.v.w. exceeding 20 tonnes
870431 g.v.w. not exceeding 5 tonnes
8706 Chassis fitted with engines, for the motor vehicles of headings 87.01 to 87.05.
870600 Chassis fitted with engines, for the motor vehicles of headings 87.01 to 87.05.

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