Today, May 28, President Jair Bolsonaro signed Decree 10,377 that exempts from the Tax on Financial Operations (IOF) the credit operation of CONTA COVID, regulated by Decree No. 10,350 of May 18, 2020. The measure will allow the reduction the financial costs of the loan benefiting electricity consumers across the country.

CONTA-COVID's credit operation will be structured in the form of a syndicated loan - coordinated by the National Bank for Economic and Social Development (BNDES) and with the participation of public and private banks - guaranteed by tariff assets in accordance with the Provisional Measure 950, of April 8, 2020. The IOF exemption, now authorized by the Government, aims to further reduce the financial costs of the operation, in contrast to normal market costs.

With today's Decree, the Government is taking another step towards solving the problems experienced by distributors in the electricity sector, by guaranteeing access to the financial resources necessary to compensate for the loss of temporary revenue resulting from the pandemic; protect the rest of the industry chain so that companies continue to honor their contracts; the final consumer, for saving him from tariff increases in the context of a global crisis, from a reduction in his payment capacity and family budgets; with the lowest possible cost for all Brazilians.