Gabriela de Ávila Machado
Lawyer at Marcos Martins Advogados
Provisional Measure No. 992/2020 (“MP”) was published on July 17, 2020. The MP deals with the following institutes (article 1):
(I) the granting of credit to micro, small and medium-sized companies under the Working Capital Program for Business Preservation;
(II) presumed credit calculated on the basis of credits arising from temporary differences, except for credit cooperatives and consortium administrators;
(III) the sharing of fiduciary alienation; and
(IV) exemption from the requirement to demonstrate tax compliance in operations carried out by the Central Bank of Brazil. The main aspects of the Provisional Measure are detailed below.
The MP creates the Working Capital Program for the Preservation of Companies, “CGPE”, aimed at carrying out credit operations with companies with gross revenue of up to R$300 million (base year 2019) or an amount proportional to the number of months of operation in 2019.
The MP also determines that financial institutions and other institutions authorized to operate by the Central Bank, which join the CGPE, will be able to calculate presumed credit in certain situations, until December 31, 2025.
The MP also brings changes to fiduciary alienation, allowing the fiduciary (with the consent of the fiduciary creditor) to share the fiduciary alienation, i.e. “to use the property fiduciarily alienated as collateral for new and autonomous credit operations of any nature, provided that they are contracted with the fiduciary creditor of the original credit operation”. Articles 14 et seq. of the MP provide further details on the registration of sharing, liquidations, among others.
