Government injects BRL 906.8 million into the Pronampe Guarantee Fund

The Operations Guarantee Fund (FGO) of the National Support Program for Micro and Small Businesses (Pronampe) received a contribution of R$ 906.8 million from the federal government, reported this Friday (7) the Banco do Brasil (BB). Created during the pandemic, the program provides credit to small businesses with less bureaucracy and requirements.

According to BB, the injection of resources took place on June 29 and will allow the maintenance of Pronampe’s operations. “The contribution will be used to continue the National Support Program for Micro and Small Businesses, which is a permanent policy for strengthening small businesses”, informed BB.

The injection of resources into the FGO is important to allow the leverage of Pronampe’s operations. This is because the fund covers eventual defaults and reduces interest rates for micro and small entrepreneurs, in addition to reducing the requirement for guarantees (assets that can be taken by banks in case of non-payment).

According to Banco do Brasil, the FGO covers the risk of default in Pronampe credit operations up to the limit of 15% of the loss in the portfolio of financial institutions. Fund administrator, BB charges a fee of 1% per year on the fund’s assets.

FGO resources are invested in exclusive investment funds managed by BB Asset (BB-DTVM), the public bank’s asset manager. BB-DTVM receives a management fee of 0.09% per year for the investments.