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Guarantees Report– 1st Third (2017)

Guarantees Report– 1st Third (2017)

According to Article 29, IV, and Article 40 of the Brazilian Fiscal Responsibility Law (FRL), Federal Guarantees can be classified in two categories. The first and most common are the guarantees on credit loans, which correspond to the guarantees offered by the Federal Government towards Government Related Entities (GRE), subnational governments, State Owned Enterprises (SOE) and Controlled Entities according to legal definitions. The second type of guarantees are generally called funds, including those managed by the Federal Government aiming at financing or providing liquidity to specific activities. As for the origin, the guarantees linked to funds are only domestic. On the other side, guarantees attached to credit loans can be classified as foreign or domestic, depending on the origin of the guaranteed loan. By the end of April 2017, the outstanding guarantees amounted to R$ 299.30 bn, credit loans being represented by R$ 222.65 bn, while funds were represented by R$ 76.65 bn […]