Brazil Injects US$ 42 Billion in Economy to Create More Jobs

Brazilian minister Guido Mantega Guido Mantega, the Brazilian minister of Finance, announced this Thursday, January 22, that the National Treasury is going to inject 100 billion reais (US$ 42.2 billion) into the Brazilian Development Bank (BNDES).

The capital is going to fund projects in the sectors of gas, oil, electric power, machinery and equipment, and industrial investment. Projects to be approved by the BNDES must list how many jobs will be created.

"The businessmen who used to shop for funds on the international market and are not managing to obtain capital due to the financial crisis will be able to resort to the BNDES," he said. With the funds approved today, the BNDES will have a total annual budget of 166 billion reais (US$ 42.4 billion) this year for credit operations.

According to the minister, the funds for the BNDES will be supplied in the form of public bonds and financial surplus of the Treasury, which will receive the money back in the future. The BNDES will have to pay 70% of the US$ 42.2 billion corrected by the Long-Term Interest Rate (TJLP) plus a 2.5% premium a year, resulting in a final rate of 10.75% a year.

The remaining 30% of funds to be supplied to the Development Bank will be corrected by the cost of the National Treasury's shopping for funds abroad (around 6% a year). "This is how we fight the crisis, by maintaining investment," said Mantega.

ABr

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  • Show Comments (4)

  • Falupa

    Ch c.
    I love these comments. I think Ch. C. is very biased. I just hope that he doesn’t show to defend his honor here… Then we will here more terrible comments.

  • Sylon

    That is what he deserves
    That would serve him right… he is soooo racist…

    I started reading the articles on this site and i was totally disgusted with his messages of hate against a nation…I think Brazil has a lot to learn but come on… the guy wasn’t giving any constructive criticism.. he was spreading racism and hate on here… He wasn’t criticizing the government.. (I criticize the government when they need criticism, I critized his government for such an unfair citizenship law).. he was and is spreading hate for the readers of this website towards brazilian people… and this is not the way to go …

    Why does he care sooo much about what brazilian people think and what the government does???? I think he either lost money in Brazil due to his incompetence or his wife cheated on him with a brazilian guy or something like that which goes beyond business…. That guy has an issue…

    .. if you look back on previous articles, he’s been writing crap for months and months.. I feel sorry for him that his life now involves writing his crap on here. he is certainly loopy

  • sage

    To Sylon regarding racist ch.c.
    ch.c is probably maintaining a low profile as the Brazilian Federal Police have an arrest warrant
    out for him. 1 cannot slander & defame a country & it’s administration indefinitely & hope to get
    away w/ it. The PF is working in conjunction w/ Interpol & the swiss police on this.

  • Sylon

    Where is that Swiss racist Ch.c???
    Where is that Swiss racist Ch.c posting rubbish discriminatory comments on here????

    I know what he will say about this article that Brazil intends to inject the country with investments in social projects to create more jobs… he will say something like: Switzerland is better..

    If your midget Switzerland is so better, how can it have such a racist law bellow???

    BBC NEWS – An official report into the process of naturalisation in Switzerland says the current system is discriminatory and in many respects racist.
    http://news.bbc.co.uk/2/hi/europe/6992670.stm

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