Durigan: There will be credit to BRB with support from banks and guarantee from the GDF

The Minister of Finance, Dario Durigan, stated this Tuesday (26) that a credit operation is being negotiated between the federal government and the GDF (Government of the Federal District) to be taken by the district Executive with FGC (Credit Guarantee Fund).

According to Durigan, the operation will have the support of a syndicate of public and private banks, with counter-guarantees to be provided by the GDF.

These were the parameters presented by the minister at the conciliation hearing at the STF (Supreme Federal Court) between the Lula government and the GDF.

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In return, the Union committed to making the criteria involving the GDF fiscal aid plan more flexible, in order to make a larger volume operation viable.

The DF is currently evaluated with Capag (Payment Capacity) grade C by the National Treasury. The analysis considers the level of debt, current savings and liquidity index to assess the fiscal situation of subnational entities.

Capag is observed when they seek new loans with a guarantee from the Union. With a C rating, the GDF could take out a loan of up to R$900 million from the federal government.

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Source: CNN