Brazil’s Provisional Measure (MP) No. 1.309, enacted on August 13, 2025, is a significant legislative effort designed to bolster the national export sector against economic impacts, particularly from additional tariffs imposed on Brazilian exports to the United States. This measure strategically leverages and expands existing financial mechanisms to support affected businesses and promote export diversification.
Key Technical Highlights for International Stakeholders
The MP focuses on three main pillars: enhanced export financing, strengthened guarantees for micro and small enterprises (MSEs), and refined export credit insurance.
1. Bolstering Export Financing via the FGE
The MP authorizes the use of a substantial financial surplus from the Export Guarantee Fund (FGE), totaling R$ 30 billion (approximately USD 5.7 billion), as a primary source for new financing lines.
- Purpose: These funds are specifically for individuals and private legal entities exporting goods and services, as well as their suppliers, especially those impacted by US tariffs.
- Use Cases: Funds can be used for working capital, acquisition of capital goods, supply chain densification, and technological innovation to expand and diversify exports.
- Strategic Focus: The FGE’s scope now explicitly includes financing for productive investment projects in Brazil aimed at producing goods or services for export, particularly those of medium or high technological intensity or related to the green economy.
- Operationalization: Financing will be channeled through the National Bank for Economic and Social Development (BNDES) or other accredited financial institutions, which will assume the credit risks.
- Employment Commitment: A crucial condition for accessing these FGE-backed lines is a commitment to maintain or increase employment, or other suitable commitments if job maintenance is unfeasible. Non-compliance will result in the loss of preferential interest rates.
2. Enhanced Support for MSEs via Pronampe
The MP strengthens the guarantees provided by the Operations Guarantee Fund (FGO) under the National Program to Support Micro and Small Enterprises (Pronampe).
- Guarantee Coverage: Participating financial institutions can receive an FGO Pronampe guarantee of up to 100% of each guaranteed operation, with the FGO’s default coverage limited to 85% of the linked portfolio.
- Beneficiary Focus: These enhanced guarantees specifically target private individuals and legal entities exporting goods and services, and their suppliers, impacted by US tariffs.
- Flexible Payment Terms: For existing Pronampe operations with affected beneficiaries, the MP allows for significant flexibility:
- Prorogation: Extension of due and overdue installments, with a maximum total term of eighty-four months (7 years).
- Grace Period/Suspension: An additional grace period of up to twelve months or a suspension of installment payments for up to twelve months.
- Debt Restructuring: New funds can be used to liquidate existing Pronampe operations, offering a path for debt restructuring.
3. Adjustments to Export Credit Insurance (SCE)
The MP introduces a notable change to the official export guarantee system, allowing the competitiveness of national production in international markets to be considered in the pricing methodology for export credit insurance premiums. This indicates a strategic shift towards using SCE as a tool to support key sectors.
Targeted Beneficiaries and Prioritization
Support actions are broadly designated for individuals and private legal entities exporting goods and services, as well as their suppliers, particularly those impacted by additional US tariffs.
Future joint acts by the Ministry of Finance and the Ministry of Development, Industry, Commerce, and Services may establish prioritization criteria, considering factors such as:
- Percentage of revenue dependent on US exports.
- Specific sectors involved.
- Size of beneficiaries (e.g., micro, small, and medium-sized enterprises).
- Types of products.
Key Financial Values and Payment Terms
To facilitate understanding of the main monetary values, guarantee percentages, and extended payment terms specified in the Provisional Measure, the following tables provide a concise summary.
Table 1: Key Financial Values
| Purpose | Value/Percentage | Source/Detail |
|---|---|---|
| FGE Financial Surplus for Financing | R$ 30,000,000,000.00 (thirty billion reais) | Authorized use of FGE surplus |
| FGO Pronampe Guarantee (per operation) | Up to 100% of the value of each guaranteed operation | For Pronampe participating institutions |
| FGO Pronampe Portfolio Coverage Limit | 85% of the linked portfolio | Default coverage by FGO |
Table 2: Payment and Grace Periods
| Measure | Duration/Term | Program/Detail |
|---|---|---|
| Maximum Total Term for Prorogation | Eighty-four months | For due and overdue Pronampe installments |
| Additional Grace Period/Payment Suspension | Up to twelve months | For existing Pronampe operations |
Future Regulatory Landscape
Full implementation of MP 1.309 will depend on further acts and regulations from various government bodies. The National Monetary Council (CMN) will set general conditions, financial charges (including interest rates), and terms for the FGE financing lines. The Ministry of Finance will define specific terms for employment commitments and non-compliance penalties. The Chamber of Foreign Trade (CAMEX) will establish guidelines for FGE resource use in “green economy” and “high-tech” projects, and for SCE pricing.
Conclusion
MP 1.309 represents a proactive and comprehensive strategy by the Brazilian government to shield its export sector from external shocks and foster long-term competitiveness. International businesses and investors should closely monitor the forthcoming regulatory details to understand the full implications and opportunities presented by this significant economic policy.