# Brazilian subnational credit and infrastructure financing

> Live situation record from CLSTR: https://clstr.news/situations/brazilian-subnational-credit-and-infrastructure-financing
> Updated: 2026-08-27T20:34:04.000Z. Sources: 54. Developments: 2.

The Brazilian Ministry of Finance authorized R$ 12.9 billion in state loans for São Paulo, Piauí, Maranhão, Pernambuco, and Rondônia for infrastructure projects including urban mobility, transport, water resources, and sanitation. Due to the electoral period, these states must sign agreements with federal financial institutions by September 7.

To support these activities, the National Monetary Council (CMN) approved a resolution to increase the annual credit limits for states, municipalities, and the Federal District by R$ 3 billion. This raises the global annual limit from R$ 23.625 billion to R$ 26.625 billion, a move intended to more efficiently utilize fiscal space identified by the National Treasury Secretariat. The expansion includes specific increases for credit with Union guarantees (rising from R$ 5.5 billion to R$ 7 billion) and without guarantees (rising from R$ 5.5 billion to R$ 6 billion). Limits for Novo PAC operations were also adjusted, with the non-guaranteed portion increasing to R$ 2.2 billion and the guaranteed portion to R$ 2.8 billion.

Regarding strategic sectors, the CMN reduced interest rates to 3% per year for Brasil Soberano financing lines for companies in the critical and strategic minerals chain, extended BNDES financing deadlines to December 31, 2027, and expanded credit access for the fertilizer chain. 

For ecological financing, the CMN adjusted the Eco Invest Brasil program to attract more financial institutions. The variable remuneration limit for institutions structuring and operating innovation funds was raised from 2% to 3% per year, bringing the total potential cost to 4% per year when combined with the 1% fixed rate.

## Claims

- The CMN approved a resolution to increase credit limits for states and municipalities by R$ 3 billion. (corroborated by 4 sources)
- The annual global limit for subnational credit operations increased from R$ 23.625 billion to R$ 26.625 billion. (corroborated by 4 sources)
- Credit with Union guarantees increased from R$ 5.5 billion to R$ 7 billion. (corroborated by 4 sources)
- Credit without Union guarantees increased from R$ 5.5 billion to R$ 6 billion. (corroborated by 4 sources)
- The Novo PAC sublimit without Union guarantees increased from R$ 1.2 billion to R$ 2.2 billion. (corroborated by 4 sources)
- The Novo PAC sublimit with Union guarantees increased from R$ 1.8 billion to R$ 2.8 billion. (corroborated by 4 sources)
- Interest rates for Brasil Soberano lines for critical and strategic minerals were reduced to 3% per year. (single source)
- The deadline to request financing through BNDES was extended by 12 months to December 31, 2027. (single source)

## Timeline

### 2026-08-27: Brazil's CMN expands credit limits for states and municipalities

Brazil's CMN has increased credit limits for states and municipalities by R$ 3 billion, expanded fertilizer sector credit, and raised remuneration caps for Eco Invest Brasil green projects.

50 sources. https://clstr.news/cluster/cmn-increases-credit-limits-for-brazilian-states-and-municipalities

### 2026-08-23: Brazil Ministry of Finance authorizes R$ 12.9 billion in state loans

Brazil's Ministry of Finance authorized R$ 12.9 billion in federally guaranteed loans for five states to fund infrastructure, urban mobility, and sanitation projects.

4 sources. https://clstr.news/cluster/brazil-ministry-of-finance-authorizes-r-129-billion-in-state-loans-1

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Cite as: Brazilian subnational credit and infrastructure financing. CLSTR, https://clstr.news/situations/brazilian-subnational-credit-and-infrastructure-financing