Brazil's federal government is assessing a potential expansion of its support measures to mitigate the effects of the ongoing oil crisis, BNDES President Aloizio Mercadante said on Tuesday.
The package under consideration would represent a new phase of a program deployed last year to aid exporters that have been hurt by higher U.S. tariffs. Mercadante described the original initiative as one that supplied credit at concessional interest rates to businesses facing tariff-related headwinds.
According to Mercadante, a surplus of 6 billion reais remains from the first phase of that support program and could be channeled into the proposed follow-up measures. He indicated that the government intends to prioritize assistance for the fertilizer sector, alongside other industries that continue to be subject to U.S. tariffs in excess of 15 percent.
Mercadante also said that talks are already under way with Vice President Geraldo Alckmin about the possible design and deployment of the new aid measures. He did not provide further operational details or a timeline for implementation.
Context and mechanics
The first iteration of the support plan focused on supplying affordable credit to affected exporters. That earlier phase, as Mercadante noted, left an unallocated balance of 6 billion reais that policymakers are now considering using as part of the response to the oil crisis.
Scope and priorities
- Fertilizer producers are identified as a priority for the next phase of support.
- Other exporters facing U.S. tariffs above 15 percent are also expected to be eligible for priority consideration.
Decision process
Mercadante confirmed that consultations are ongoing with the vice president, signaling that the proposal remains under active discussion rather than finalized policy. No additional funding amounts, eligibility criteria, or implementation dates were disclosed.
This report is based solely on statements attributed to the president of BNDES and reflects the information he provided about the potential expansion of an existing export support program.