Brasília – Banks may return to participating in loan operations for prior payment of exports. The Central Bank of Brazil (BC) edited on Thursday (28) a letter expanding the possibilities for anticipation of funds for those selling abroad. The modification, in practice, simplifies the inflow of dollars.
The executive secretary at the BC, Geraldo Magela Siqueira, admitted that the measure should simplify the inflow of dollars into the country at a moment of appreciation of the US currency. However, he added that that was not the reason for the measure to be taken by the monetary authority. “We are simply adjusting export financing through exchange anticipation,” he said.
Through these credit operations, buyers borrow money and advance the payment to the Brazilian shipper prior to shipment, and this simplifies foreign trade. The Central Bank, however, suspected that the financing was being used for some other finality, as banks were found borrowing money several years in advance.
In January and February, according to Magela, anticipated payment operations totalled US$ 8.9 billion, a volume around 40% greater than in the same period last year. Of this total, most – US$ 5 billion -, was mature in more than one year.
In March, the Central Bank determined that only importers abroad could execute the operation and the maximum maturity was reduced to 360 days from the borrowing to shipment of the goods or providing of the service.
“We managed to control the growth once we noticed they were mostly long-term operations,” said the executive secretary at the Central Bank. Now the monetary authority has authorised banks to make the loan, but the limit is one year.
With the restrictions, pointed out Magela, payment advanced to exporters totalled US$ 8.8 billion from March to April, a practically stable volume as against the first two months. According to him, the return to these operations by banks should help trade, without compromising the reason for the loans. “The maximum span was maintained at 360 days. The prohibition to long-term operations was maintained,” he said.
*Translated by Mark Ament
