Brazil Plans R$30 Billion Treasury-Backed Loans for App and Taxi Drivers

Overview

• Multiple outlets report the government is preparing a credit line of up to R$30 billion funded by the National Treasury and run by BNDES, with formal terms still pending approval by the Monetary Council.
• The reported design points to interest near 12% versus the 14.5% Selic, with a six‑month grace period, repayment over up to six years, and a vehicle price cap near R$150,000, though these features await final rules.
• Officials say the transfers to BNDES would occur in stages rather than as a single lump sum, and the development bank would channel the financing through partner lenders.
• Government technicians argue the measure supports investment and driver income because the car is a work tool, while analysts warn that lending below the Selic creates an implicit subsidy that raises debt service costs.
• This plan follows a broader credit push that includes R$21.2 billion for trucks and buses, R$14 billion added to the Climate Fund, a R$10 billion line for farm equipment, and R$20 billion for housing, with reports indicating a possible launch next week.