The government proposes to establish a development letter of credit, similar to the LCI and LCA

The Federal Government sent the text of a bill to the National Congress that “establishes the Development Credit Letter” and amends the law that created, among other points, the Long-Term Tax (TLP).

The National Bank for Economic and Social Development (BNDES) had confirmed at the beginning of the year its intention to create a new title, the Letter of Credit for Development (LCD), which would operate in the same vein as LCIs, for real estate. Financing and life cycle agreements for agribusiness. BNDES sent the LCD proposal to the Ministry of Finance in March.

In an interview with the newspaper Folha de São Paulo at the time, the Development Bank's planning director and former finance minister, Nelson Barbosa, stated that the goal of the LCD would be to expand resource sources (Finance) of the BNDES, in order to allow payments to increase to the equivalent of 2% of GDP (Bruno's GDP), at least, or approximately R$200 billion.

After sending the proposal to Congress, the head of the BNDES, Aloisio Mercadante, stated that in addition to the possibility of obtaining greater financing, the new instrument would allow “more attractive measures to encourage small and medium-sized enterprises, generating more employment opportunities.” And income.”

The bill also makes changes to Law No. 13483, issued on September 21, 2017. In addition to the TLP, this law also provides for points such as resource bonus from the PIS-Pasep Participation Fund, the Workers’ Support Fund (FAT) and the Maritime Commerce Fund (FMM). And on the financing rewards granted by the National Treasury to BNDES.

The proposal submitted to Congress also stipulates that SELIC (economy-based post-stabilization rate) and pre-fixed interest rates could also be used by the BNDES to reward VAT, in addition to the TLP itself. “This measure does not involve tax costs and will provide greater flexibility to credit borrowers, who can choose different rates, according to their needs,” explains Barbosa.