Gabriela de Ávila Machado
Lawyer at Marcos Martins Advogados
On July 20, the National Monetary Council (CMN) published Resolution No. 4,838(Resolution), which regulates the Working Capital Program for the Preservation of Companies (CGPE).
The CGPE was created by Provisional Measure No. 944 of 2020 and aims to complement and assist the measures to combat the economic effects of Covid-19 already in place. The program provides new incentives for access to credit for micro, small and medium-sized companies.
According to the Resolution, the credit granted under the terms of the CGPE will be intended exclusively for companies’ working capital, and will have a minimum term of 3 years and a minimum grace period of six months for repayment to begin.
The forecast is that the increase in credit granted to these companies will reach R$120 billion, noting, however, that the risks and resources will be borne by the financial institutions.
