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LatinNews Daily - 27 August 2021

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In brief: Brazil facilitates loans for small businesses

* Brazil’s President Jair Bolsonaro has signed a decree establishing a new system (Sistema Nacional de Garantias de Crédito) to facilitate the access of small- and micro-businesses to credit by broadening the range of organisations that can act as a guarantor for loans. Loans will now be able to be underwritten by a wider range of institutions, including so-called ‘societies for solidary guarantees’ (SGS), credit cooperatives, and public or private funds. The previous authorised guarantors, such as the state-owned Banco do Brasil (BB) and the national development bank (BNDES) will continue to participate in the new system. A presidential statement explained that “in this way, for example, a group of companies will be able to come together and set up a credit cooperative to guarantee the operations that were contracted by its partners.” The decree was published yesterday (26 August) in the official gazette, and came into force immediately.