• Categories
  • Archives

Brazil Creating Export Credit Agency, the Brazilian Eximbank

Eximbank Brazil's Ministry of Development, Industry and Foreign Trade and the Brazilian Development Bank (BNDES) are articulating the creation of a credit agency for exports, the Brazilian Eximbank.

According to the president at the BNDES, Luciano Coutinho, the bank should finance exports, but the creation of a subsidiary or a new institution within the Brazilian financial system would offer more complete services in this area.

"An export credit agency, which almost all nations have, provides a series of other services and modalities. For example, guarantees, offer of insurance and financing of exports under certain conditions," explained Coutinho.

To him, the financing of exports, when combined with other factors, "is more powerful." The establishment of the Eximbank had already been announced by the minister of Development, Industry and Foreign Trade, Miguel Jorge, according to whom president Luiz Inácio Lula da Silva approved the idea.

Coutinho did not, however, forecast when the credit agency will come off the paper. "I prefer to work first and announce later. We are still at a process of modeling this idea."

Luciano Coutinho pointed out that legislative modifications will be necessary for the BNDES to promote this kind of operation, in case the Eximbank is established as one of its subsidiaries.

The BNDES president participated in a public audience, May 27, at the Commission of Economic Affairs of the Senate (CAE), to discuss the economic crisis. To him, the country "resisted brilliantly to the stress test" imposed by the global economic conjecture in recent months.

With regard to the Brazilian market, Coutinho estimates that the country may return to growth of 4% in 2010. "What depends on the domestic market and on autonomous decisions will do very well. This provides support for the Brazilian economy to grow at least 4%, but it could grow 6% or 7%," he explained.

However, export companies that depend on the foreign market may still live a difficult period over the next two or three years, said Coutinho.

"All that depends on the global market, on global trade, which should take longer to recover. We must therefore be realistic and see that over the next two or three years the Brazilian growth will depend more on the domestic market and on what we are capable of investing," he concluded.

ABr

Tags:

  • Show Comments (1)

  • João da Silva

    Has anyone heard from our Geneve based agent? 😀 😉 😉

Your email address will not be published. Required fields are marked *

comment *

  • name *

  • email *

  • website *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Ads

You May Also Like

Italy Goes to Brazil to Build Ports and Railroads

Brazil’s Minister of Planning, Budget, and Management, Guido Mantega, signed an agreement, October 28, ...

How an International Bank Sank Millions in Brazil for Some Rodin Fakes

Did you know that the Inter-American Development Bank (IDB), a very well-known international financial ...

Morocco and Brazil Find Out They Are Open for Business

The search for partnerships with Brazilian companies was one of the main objectives of ...

WTO Meeting Will Fail If Europe Can’t Do Better, Says Brazil

The Brazilian Minister of Foreign Relations, Celso Amorim, believes that the determination of a ...

Brazil’s Foreign Minister Starts African Business Tour

Celso Amorim, Brazil's Foreign minister, has started this Sunday, June 22, a tour of ...

Foreign Direct Investment in Brazil Doubles in 2007 to US$ 35 Billion

Brazil's share of foreign direct investment (FDI) stood at US$ 886 million last December, ...

Dubai’s Default Doesn’t Worry Brazil Who Says It’s Loaded with Reserves

The president of Brazil's Central Bank (BC), Henrique Meirelles, said this Friday, November 27, ...

Brazil Hoping to Sign a Mercosur-EU Agreement by 2006

Given the discouraging prospects of the coming trade liberalization negotiations in the framework of ...

Rio+20 Is Testing Lab for Technology Brazil Will Use in World Cup and Olympic Games

Rio+20, the United Nations Sustainable Development Conference that begins today in Brazil has been ...

Brazil Announces Uranium Enriching Program and the World Yawns

With Western opposition to Iran’s nuclear ambitions continuing to make the headlines, Brazil launched ...