The National Monetary Council (CMN) approved on Thursday a resolution that expands by R$ 3 billion the limits for contracting credit operations by states and municipalities. The ceiling goes from R$ 23.625 billion to R$ 26.625 billion.
The measure was taken after the Ministry of Finance identified that federative entities participating in fiscal adjustment programs had remaining space to take out loans, while the CMN's subnational credit limits had practically exhausted available balance.
According to the ministry's note, the expansion represents a more efficient reallocation of fiscal space already programmed for the fiscal year, allowing better distribution of available resources among the different entities.
The sublimit for credit operations with Union guarantee was also expanded according to the resolution approved by the CMN, benefiting states and municipalities seeking resources for investments and maintenance of public services.
