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Brazil’s Development Bank Has Loaned Close to US$ 50 Billion This Year, a Record

The BNDES, Brazil's National Bank for Economic and Social Development, announced that it disbursed 84.2 billion Brazilian reais (US$ 46.9 billion) between January and August, representing a growth of 59% in comparison with the first eight months last year. The figure, according to the bank, is a record high for the period.

Industry and the infrastructure sectors received 84% of the funds cleared between January and August, or 70 billion reais (US$ 39 billion).

New loans that have been passed, but not necessarily freed up already, totaled 98.8 billion reais (US$ 55 billion) during the period, growth of 49% over the first eight months of 2008.

Industry, according to the bank, accounted for 48% of total funds cleared, i.e. 47.2 billion reais (US$ 26.3 billion), 42% more than from January and August last year. The volume of funds cleared for the sector was also the highest ever for the period.

With regard to the infrastructure sector, clearance of new financing totaled 34.4 billion reais (US$ 19.1 billion), i.e. 35% of the total, according to the BNDES. There was growth of 62% in the total of funds cleared, compared with the first eight months of 2008. The trade and services sectors accounted for 13% of clearances and agriculture, for 4%.

Financing consultations received by the bank, which show the interest of companies in making loans in order to invest, totaled 161.8 billion reais (US$ 90.2 billion), growth of 33% over the same period of last year. Projects eligible for clearance totaled 128 billion reais (US$ 71.3 billion), growth of 21%.

According to the bank, consultation and eligibility figures outline "a perspective of investment, both in industry and in infrastructure, particularly in the electric, logistics, oil and gas, housing and agribusiness sectors."

In the 12-month period ending in August, disbursements by the BNDES totaled 123.6 billion reais (US$ 68.9 billion), growth of 53% compared with the previous period.

Back to Surplus

The sum of dollar inflow and outflow in Brazil, a.k.a. the flow of exchange, went back to a surplus in September, according to figures disclosed by the Central Bank of Brazil.

In September, up until September 25, the flow was US$ 1.060 billion positive. In previous data, for up to the 22nd this month, there was a deficit of US$ 991 million. In the same period of 2008, a surplus of US$ 3.008 billion was recorded.

The result takes into consideration the flow of trade (exports, imports and financing to foreign trade) and financial operations (investment in bonds, remittances of profits and dividends to foreign countries and foreign direct investment, among other operations).

According to the data supplied by the Central Bank, this month, up until the 25th, the US$ 3.613 billion financial operations surplus was enough to compensate for the trade deficit of US$ 2.553 billion.

From January until September 25th, the flow of exchange recorded a surplus of US$ 7.953 billion, as against US$ 17.393 billion in the same period of 2008. The flow of trade is running a surplus of US$ 8.781 billion and financial operations are running a deficit of US$ 828 million.

The Central Bank also informed that it had purchased US$ 3.240 billion on the market up until the 25th this month. The dollars become part of the country’s foreign currency reserves.

Next: World Crisis Puts a US$ 40 Billion Dent in Brazil Exports this Year
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