Trade Payables

12 Months Ended

Dec. 31, 2019

17. Trade Payables


	12/31/2019		12/31/2018
Domestic suppliers		1,897,256		2,079,010
Domestic suppliers – reverse factoring (i)		455,950		73,169
Foreign suppliers		261,222		472,597
Foreign suppliers – reverse factoring (i)		85,643		106,901

		2,700,071		2,731,677

(i)

Suppliers – reverse factoring: some subsidiaries of the Company entered into an agreements with a financial institutions, which consists of the anticipation of receipt of the trade payables by the supplier, in which the financial institutions prepay a certain amount from the supplier, and receives on the maturity date the amount payable by the subsidiaries of the Company. The decision to join this transaction is solely and exclusively of the supplier. The agreement does not substantially change the main characteristics of the commercial conditions previously established between the subsidiaries of the Company and the suppliers. These transactions are presented in operating activities in the statements of cash flow.

Some Company’s subsidiaries acquire

oil-based

fuels and LPG from Petrobras and its subsidiaries and ethylene from Braskem S.A. These suppliers control almost all the markets for these products in Brazil.