Brazil Moves to Let Public Funds Guarantee FNAC Aircraft Loans

Overview

• The Ports and Airports Ministry will seek a CMN resolution amendment to allow public resources to serve as guarantees in two aircraft financing lines.
• The 2026 budget sets aside R$4 billion pending presidential sanction plus R$1.5 billion for immediate use to fund national aircraft purchases and domestically produced SAF via FNAC.
• Disbursements would be channeled through BNDES as projects are approved by the FNAC management committee, with interest rates ranging from 6.5% to 7.5% per year.
• Officials are coordinating the proposal with Casa Civil and the National Treasury and negotiating guarantee arrangements with the Finance Ministry and BNDES.
• The upcoming meeting will also weigh resource allocation rules, and airlines accessing the credit must increase SAF use, expand flights in the Amazon and Northeast, and refrain from boosting shareholder payouts during loan grace periods.