Brazil's Lula signs BNDES subsidiary law, vetoes export credit fund

President Lula signed Law 15.501 authorizing BNDES to create subsidiaries, but vetoed the Export Credit Fund (FCE), a key congressional provision that would have used public funds to finance exporters. The veto signals a policy reversal from earlier support for expanded state credit, potentially limiting BNDES's role in export financing. The move reflects ongoing executive-legislative tension over fiscal priorities and industrial policy.