Loans by Brazil’s Development Bank Grow 30% to Record US$ 37 Billion

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Energy in Brazil Brazil's BNDES (National Bank for Economic and Social Development) posted record disbursements in the last 12 months. According to information disclosed by the institution, funds disbursed totaled 86.6 billion Brazilian reais (US$ 37.2 billion) between November 2007 and October this year, an increase of 30% in comparison with the previous period.

The volume of loans granted in the first 10 months of 2008 was also record, at 71.5 billion reais (US$ 30,7 billion), growth of 44% over the same period last year. According to the bank, the industrial and infrastructure sectors registered great expansion in financing both in the last 12 months and in the interval from January to October this year.

The infrastructure area answers to 40% of all disbursements in the last 12 months, or 35 billion reais (US$ 15 billion). The main investment was made in logistics and energy sectors. In the same period, industry received 34.5 billion reais (US$ 14.8 billion), almost the same participation. According to the BNDES, this result reflects the good performance of the textile and garment sectors, mining and food and beverage.

According to the bank, the quantity of inquiries from January to October showed that the disposition of the private sector to make loans and invest shows that the international financial crisis has not affected the demand for credit. In the third quarter there was an increase of 40% in requests made to the BNDES when compared to the same period in 2007.

The bank said that it has conditions to maintain its support to projects in development and to expand financing. "The BNDES may act in anticyclic manner in the concession of credit to national companies," according to a press statement by the organization.

"Despite a worsening of the international crisis and reduction of liquidity, the BNDES should play an important part in sustaining investment in the economy," adds the statement.

In the period of 12 months ending in July 2008, disbursements by the bank answered to 14% of bulk formation of fixed capital in the Brazilian economy, that is, of direct investment.

Anba

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