LatinNews Daily - 23 April 2024

*Brazil’s President Luiz Inácio Lula da Silva has signed a decree launching a new programme dubbed ‘Acredita’ (Believe), which will aim to renegotiate debts and incentivise investments for individual entrepreneurs and small businesses. According to a government press release, Acredita represents a continuation of the ‘Desenrola’ (Untangle) debt forgiveness and renegotiation programme for low-income individuals which was launched last year. The Acredita programme aims to support people and companies with an annual revenue of less than R$360,000 (US$69,700). It involves the creation of a loan guarantee fund, Fundo Garantidor de Operações (FGO), to be overseen by state-owned bank Banco do Brasil (BB). In the initial phase of the programme, the FGO will receive R$1bn in federal funding, with R$500m to be transferred to the fund in 2024. With this initial guarantee fund, banks are expected to be able to provide up to R$12bn in credit for individuals and businesses.