The Brazilian government announced that it will open an emergency credit line for SMB, which earn between BRL 360,000 and BRL 10 million a year, intended to finance wages for workers. The program will demand BRL 40 billion and will be funded mostly by the National Treasury, as Folha de S.Paulo newspaper learned this Friday, 27.
The program will finance up to two minimum wages per employee. If the worker earns more than that, the credit will only contemplate the established limit, and the company may complete the payment. According to the Brazilian Central Bank‘s president Roberto Campos Neto, the program could reach around 12 million people and 1.4 million companies. The initiative was formulated by the country’s Ministry of Economy and BNDES (National Bank for Economic and Social Development).
Of the total amount, BRL 17 billion (per month, for two months) will be financed through National Treasury resources and the remaining part will come from the banking sector itself.
Companies that accept to take part in the program will not be able to fire employees for two months. “The money goes directly to the payroll, the company is left with only the debt,” Campos Neto said, according to the media outlet. The wages will be financed for each employee with a zero spread (3.75%). The loan will have a six-month grace period and will be split into 36 installments.