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DF Chamber approves project that authorizes loan to help BRB

The Legislative Chamber of the Federal District approved, this Tuesday (9), in the first and second rounds, the bill that authorizes the district government to take out a loan of around R$6.6 billion to contribute to the...

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The Legislative Chamber of the Federal District approved, this Tuesday (9), in the first and second rounds, the bill that authorizes the district government to take out a loan of around R$6.6 billion to contribute to the BRB (Banco de Brasília).


The proposal ratifies the agreement approved by the STF (Supreme Federal Court) between the Union and the Government of the Federal District, enabling the Executive Branch of the Federal District to enter into the credit operation with the FGC (Credit Guarantee Fund), providing counter-guarantees and taking other measures.


The loan guarantee will be granted by S1 banks, which are large financial institutions whose size is equal to or greater than 10% of GDP. There will be no transfer of federal resources or guarantees from the Union.

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In addition, the agreement provides for counter-guarantees in the event of default by the Government of the Federal District. Two funds from the Federal District will be used for this purpose. They are:


- States Participation Fund (FPE);
- Municipal Participation Fund (FPM).


As part of the agreement, the regional government committed to adopting fiscal adjustment measures with a view to leading the entity towards a path of fiscal balance. Currently, the fiscal situation of the Federal District gives it a C grade in CAPAG (Payment Capacity), an indicator from the National Treasury.

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