CMN Authorizes Proex Equalization for Pre-Shipment Exports

The interest equalization of the Export Financing Program (Proex) will now benefit exports before the shipment of goods, as decided on Thursday (19) by the National Monetary Council (CMN). Until now, exporters could only receive the benefit after the shipment of goods or the invoicing of services.

Through equalization, the National Treasury covers the difference between market interest rates and the subsidized rates offered in credit lines such as Proex. According to the Ministry of Finance, this extension will benefit small and medium-sized exporters, who often have limited access to other financing sources before the shipment of goods sold abroad.

“With the new measure approved by the CMN, the equalization periods now align with the possibility of pre-export equalization. Establishing this type of financing is an important tool for exporters with restricted access to other financing sources in the pre-shipment phase,” the Ministry of Finance stated in a note.

According to the ministry, the measure will not impact government spending as it is limited to the amounts already allocated in the Federal Budget for the Proex Equalization modality.

If the export does not occur by the scheduled date, the exporter must reimburse the Union for the pre-shipment equalization amounts received, adjusted for interest. If the delay exceeds 15% of the operation, the exporter will be barred from contracting Proex operations for five years.

Created in 2001, Proex supports Brazilian exports of goods and services by offering financing under conditions equivalent to those of the international market. This program complies with World Trade Organization (WTO) rules by aligning the terms of credit lines with international standards.

Source: Agência Brasil

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