President of BNDES says that in April funding will be released to help airlines affected by the pandemic.
It was stated this Sunday, (29), by the president of the National Bank for Economic and Social Development (BNDES), that the availability of financing to help airline companies should be released in April.
Financing according to Montezano will be exclusive to the companies' Brazilian operations and will not have subsidies.
drop in demand
Airlines have been feeling the effect of the drop in demand for domestic and international flights. Due to the coronavirus crisis, which has also been a concern for the government. Record drops have been 70% in the domestic market and over 90% in the international market.
“We are in intense discussion and our objective is to make the line available in April, which in April will be in the companies' cashiers”, said Montezano during a press conference transmitted over the internet.
According to him, the financing rate must be “low”, but without subsidies: “The objective is to offer a competitive rate, a low rate, which does not put pressure on the cash flow of these companies, but without the presence of subsidies. The idea is that the Treasury, the BNDES, the public sector have some remuneration from the operation that pays their bills. We will not carry out a subsidized operation”, said the president of the Bank.
About the financing line
Montezano also emphasized that the financing line will be available to all companies. In addition, the resources cannot be used to fund other types of financing, only for the operation of the companies.
“The other creditors will, like the BNDES, have to make an effort to extend and refinance so that companies can go through this temporary period of reduced demand,” he said.
According to Montezano, the financing will be done through a reversible debenture. Under this system, money is made available to companies at a low interest rate. If in the future, the airline's shares increase in value above a certain point, the BNDES will receive an extra remuneration.
On March 18, the government announced some measures to support companies, including an extension of the deadline for returning the amount paid for airline tickets that were cancelled.
