Government prepares subsidized credit for citizens and businesspeople in RS

The federal government is preparing a project for subsidized credit lines for citizens, small, medium and large businesspeople, as well as city halls and rural producers affected by the climate catastrophe in Rio Grande do Sul. According to the Minister of the Civil House, Rui Costa, the interest of credit will have “strong subsidy” so that the state “can get back on its feet”. As of this Wednesday, the 8th, the number of victims was 100 dead and 128 missing, in addition to 163,000 people displaced, according to Civil Defense. Of the 497 municipalities in the State, at least 417 were affected by the rains.

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In an interview with journalists this Wednesday, the Minister of the Civil House said that the federal government works on two main fronts. One with funds for emergency assistance, such as rescue, rescue, basic food baskets, cleaning, unblocking roads, health care, etc. And the other is this long-term line of credit that is being studied and should be announced by the president this Thursday, the 9th.

The idea is for the government to act as guarantor of the operation. This reduces negotiation risk and encourages banks to offer financing at lower interest rates.

“We will present it to the president, most likely tomorrow he will make this announcement, which is the financing part. For everyone, for society, for ordinary citizens, for small, medium and large business owners, for municipalities and the state. With subsidies, strong subsidies so that Rio Grande do Sul can get back on its feet. May rural and urban companies be able to rise again”, said Rui Costa.

The understanding of the Treasury, which focuses on the model, is that mainly low-income people who have lost their homes and assets will not be able to use the interest rates normally charged in the market, including because they do not have guarantees for the loan.

The values ​​and conditions for releasing the credit have not yet been announced. The proposal will be presented to the president this Wednesday, and if it has Lula’s approval, it should be announced this Thursday, the 9th. The measure will then be sent to Congress for analysis. The Minister of Finance, Fernando Haddad, told journalists that the proposal is already being articulated with parliamentarians to guarantee approval of the text.

In addition to these measures, the government gathers information about the damage to issue a provisional measure that will release funds for reconstruction of the state. There is still no estimate of the value.

Suspension of RS debt

Another proposal analyzed by the Treasury is about the debt of the State of Rio Grande do Sul with the Union. Sources from the ministry told the column that payment will be suspended until the end of the year, during the period of calamity. The measure should be officially announced and result in savings of R$3.5 billion for the Rio Grande do Sul government.

Rui Costa said that the intention is that with the suspension, the amount that would be used would be directed by the state government to rebuilding infrastructure.