On March 30, 2020, the National Treasury Secretariat issued a communication on the implementation of a pilot program to authorize the securitization of domestic credit operations guaranteed by the Federal Government, granted by financial institutions to states or municipalities.
The first stage of the process may reach, at most, the amount of R$ 20 billion reais and will be directed, exclusively, to the restructuring of debts guaranteed by the Federal Government with contracting date prior to 07.31.2019.
The total cost of the new operation must be lower than (i) the cost of the current debt, considering all fees and penalties to make the prepayment, and (ii) the maximum acceptable cost in force for securitizable operations, to be published on the website of the National Treasury Secretariat. In addition, the debts must comply with certain criteria established by the National Treasury.
It should be noted that the National Treasury adopted the model for contracting the lead coordinator as suggested by ANBIMA - Brazilian Association of Financial and Capital Market Entities in a public consultation held last year.
Finally, the National Treasury Secretariat announced that the other contractual terms and conditions of the new credit operation will be defined during the analysis of the restructuring requests.
Click here to access the public consultation report and here to read the press release in full.
The Financial and Capital Markets team is available for any clarifications and/or additional information by means of the e-mail [email protected]
