March 28, 20 - 4:39 pm - LABS

Brazilian government to launch line of credit to advance payments to public sector suppliers

According to the federal government news agency, a credit line for advancing payments from the public sector suppliers is expected to be launched in the coming weeks. Today, the Brazilian federal government purchases BRL 48 billion a year from suppliers in different areas.

In this modality to be launched, the supplier of products or services will make a loan with a bank, having as a colateral the contract with a public agency. The bank will prepay the bill, with a discount rate. When the government pays the bill, the money will be sent to the bank.