Summary
Brazil's Ports and Airports Minister has formally requested that the Finance Ministry amend rules governing FNAC-backed loans to airlines. The request, set out in an official letter dated February 13 and attached to government documents, aims to make credit from the National Civil Aviation Fund more attractive by expanding eligible uses, increasing financing limits, and reducing certain operational conditions required of recipients. FNAC is expected to release 4 billion reais starting in 2026.
Details of the proposal
In the letter, the minister said it would be necessary to adjust the resolution that sets FNAC credit conditions so that loans are more appealing to carriers. The proposed amendments include widening the scope of eligible financing beyond the present list to cover services such as training for pilots and other aviation workers. Currently, FNAC financing is limited to the acquisition of domestically manufactured aircraft and items such as engines, parts, and related components.
The minister also proposed increasing the financing cap for all eligible items to 30% of an aircraft's value, up from the current 10% threshold. In addition, the changes would explicitly permit loan proceeds to be used to secure contractual guarantees.
Regional service conditions
The request asks the Finance Ministry to soften a rule tied to access to FNAC that requires airlines to expand regional flight operations. Under the present arrangement, airlines must raise the annual frequency of flights to Brazil's Amazon and northeast regions by 30% compared with the year prior to the financing request. The proposed revision would lower that required increase to 15% - half of the current level - or, as an alternative, require that at least 17.5% of total annual departures originate and land in those regions, versus 20% today.
Potential beneficiaries and industry context
The documents note that a higher financing cap backed by government support could potentially benefit Embraer, Brazil's largest aircraft manufacturer. The country's three largest carriers by market share are Gol, LATAM and Azul. The government previously framed FNAC-backed loans as targeted support for carriers to purchase aircraft, carry out maintenance and buy sustainable aviation fuel in the wake of the COVID-19 pandemic.
Procedural status and interest rates
The Ports and Airports Ministry did not immediately respond to a request for comment. The Finance Ministry has not provided clarification on whether or when the proposal will be examined by the National Monetary Council, Brazil's top economic policymaking body.
In October, that council issued a resolution establishing rules for these loans after sustained requests from the airline sector. Interest rates on the FNAC-backed lines were set between 6.5% and 7.5% annually, depending on the credit line, compared with Brazil's benchmark rate of 15% at the time referenced in the documents. The FNAC pool is expected to begin disbursing 4 billion reais starting in 2026. (Exchange rate noted in the documents: $1 = 5.2304 reais.)
What remains uncertain
The timing and outcome of any review by the National Monetary Council remain unclear, as do any formal responses from the ministries involved. Until official consideration by the council or further ministerial clarification, the proposed amendments remain requests documented in the February 13 letter and its attachments.