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Brazil Authorizes R$30 Billion Credit Line to Help Taxi and App Drivers Buy New Vehicles

Provisional measures tie subsidized loans to sustainable new cars, place credit risk with banks and open applications on June 19 subject to later congressional ratification.

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MP libera R$ 30 bi para motoristas de app e taxistas trocarem carros
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Overview

  • The executive published two provisional measures that on Tuesday authorized up to R$30 billion for the Move Brasil/Move Aplicativos program and set the rules for the new financing line.
  • Eligible borrowers are registered taxi drivers, cooperatives and app drivers with at least 12 months of active platform registration and 100 rides on the same platform, and each beneficiary may finance only one vehicle.
  • Financing covers new cars up to R$150,000 that meet sustainability criteria (flex, electric or ethanol-hybrid) with up to 72 months to repay and a grace period of up to six months.
  • The Ministry of Fazenda will manage the funds with BNDES as financial agent, participating banks assume the credit risk because loans carry no Treasury guarantee, and automakers must be habilitated and offer at least a 5% discount.
  • Registrations and loan requests are scheduled to open June 19 and uptake will depend on banks’ credit approvals, automakers’ participation and later congressional approval of the provisional measures.