The National Monetary Council (CMN) approved this Monday an expansion of limits for contracting credit operations by states and municipalities this year. With the measure, the global margin for taking out loans, with and without federal guarantee, went from R$ 26.6 billion to R$ 28.6 billion, representing an increase of R$ 2 billion in fiscal space available to these entities.
The expansion results from a survey conducted by the National Treasury Secretariat with the entities signatories of the Restructuring and Fiscal Adjustment Programs and the Fiscal Monitoring and Transparency Program. The survey identified a volume of R$ 7.87 billion in fiscal space with no prospect of use until the end of 2026.
Of this total identified, R$ 3 billion had already been reallocated previously to expand the CMN limits, leaving an estimated balance of R$ 4.87 billion available. The council's decision reallocates an additional R$ 2 billion from this balance, since the subnational credit sublimits were practically exhausted. The government stated that this is a new reallocation of existing fiscal space, with no creation of new resources.
