ANNOUNCEMENT 17 Mar 2020
The Brazilian government announced the release of BRL 5 billion to be distributed by the public banks to grant loans to finance the working capital of SMEs.
NUMBER OF INTERVENTIONS
Ministry of Economy of Brazil. Ministério da Economia. Notícias. "Governo anuncia medidas para reduzir efeitos do coronavírus nas micro e pequenas empresas" de 17/03/2020. Available at: http://www.economia.gov.br/noticias/2020/marco/governo-anuncia-medidas-para-reduzir-efeitos-do-coronavirus-nas-micro-e-pequenas-empresas
On 17 March 2020, the Ministry of Economy of Brazil announced the release of BRL 5 billion (over USD 995.9 million) to be distributed by the public banks to local SMEs in order to reduce the economic effects from the Coronavirus. The funding is to be distributed in the form of loans to finance the working capital of these companies.
The economic resources announced in this measure come from the Income Generation Program (Proger), a public employment policy approved in 1994 to provide special lines of credits in those economic areas that can support employment and income generation.
The decision of the government to support SMEs stems from the fact that these companies are more dependent on the money they receive to maintain their economic activities.