Among the recitals, the Government highlighted “the need to provide greater flexibility in the determination of interests to facilitate commercial transactions.”
The Government enabled the issuance of promissory notes nominated in kind or merchandisea measure that aims to make commercial transactions in different sectors more flexible. The decision was made official through Decree 1124/2024 published today in the Official Gazette.
The decree regulates article 5 of Decree-Law No. 5965/1963, which established the possibility of including interest in bills of exchange, but did not specify the calculation methods.
Among the recitals, the Government highlighted “the need to provide greater flexibility in the determination of interests to facilitate commercial transactions.”
“A promissory note is a contract where one party undertakes to pay another. Although the Civil and Commercial Code allows freedom of design, Decree Law 5965/63 specified that the promissory note must pay a ‘sum of money’. This definition, In practice, it was interpreted that they could only be issued for fixed amounts of money, which limited their usefulness,” explained Minister X.
Sturzenegger added that “Decree 1124, by clarifying that interest can be fixed, variable or referred to the evolution of prices of goods, opens the possibility that a promissory note can be in practice denominated in species or merchandise, a highly demanded modality. by various sectors”.
As an example, he cited “that of an agricultural producer who prefers to buy his machinery by issuing a promissory note whose obligation moves with the price of the soybeans that he will produce with that machine.”
Source: Ambito
I am an author and journalist who has worked in the entertainment industry for over a decade. I currently work as a news editor at a major news website, and my focus is on covering the latest trends in entertainment. I also write occasional pieces for other outlets, and have authored two books about the entertainment industry.
