ANNOUNCEMENT 31 Oct 2013In October 2013, the government of Brazil announced a change in private-sector financial support.
NUMBER OF INTERVENTIONS
Ministry of Finance news item of 31 October 2013 (in Portuguese): http://www.fazenda.gov.br/divulgacao/noticias/2013/outubro/cmn-aprova-alocacao-de-r-10-bilhoes-adicionais-para-o-programa-de-sustentacao-do-investimento
Reuters Brazil news item of 31 October 2013 (in Portuguese): http://br.reuters.com/article/businessNews/idBRSPE99U09B20131031
On 31 October 2013, the National Monetary Council (Conselho Monetário Nacional, CMN) increased the budget for the Investment Support Program (Programa de Sustentaçăo do Investimento, PSI) of 2013 by 10 billion Real (US$ 4.5 bilion).
According to Counsel Bruno Leal, the measure, which was already stipulated in Law no. 12.8873 of 23 Ocotber 2013, shall provide further incentives to expand the national industry. As a condition of receiving support under this programme, local content requirements are often imposed.
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.