Government suspends insurance credit for exports after Cuban and Venezuelan defaults

Works at Mariel Port, built in Havana with BNDES funds

The measure affects small and medium-sized enterprises, which will lose the ability to compete with other countries.

After the defaults of Mozambique, Venezuela, and now Cuba, the Brazilian government has suspended insurance credit for new exports, a measure that will mainly affect small and medium-sized enterprises.

As Folha has shown, over the next few days the Treasury will pay $6 million (R$23.4 million) to reimburse BNDES (National Economic and Social Development Bank) for Cuba's default.

Just like Venezuela and Mozambique before, Cuba has failed to pay BNDES its dues. The bank is insured by the FGE (Export Guarantee Fund), a fund that uses Treasury resources to honor possible defaults.

Read more in Folha de S. Paulo