Come and Get It, Says Brazil’s BNDES with a US$ 22.2 Billion Stash

The director of Planning of Brazil’s National Bank of Economic and Social Development (BNDES), Antônio Barros de Castro, told the American Chamber of Commerce of Rio de Janeiro, on March 10, that the Bank will be an important factor in the growth of the Brazilian economy.

The current growth phase, especially on the part of industry, is geared to increasing the productivity of the existing structure. Evidence of this emphasis is that investments in machinery and equipment have outstripped investments in factory facilities, meaning that companies are striving to modernize their productive structures, he informed.


Castro reported that the BNDES possesses US$ 5.1 billion (14 billion reais) in net assets. In 2004 the institution disbursed the equivalent of US$ 14.8 billion (40 billion reais ). For this year the bank’s Council and Board of Directors have set an outlay figure of US$ 22.2 billion (60 billion reais).


Last year, the BNDES informed that the institution’s Program to Strengthen Employment and Income Generation Capacity, announced by the Minister of Development, Luiz Fernando Furlan, is already available to Brazilian companies of all sizes to finance working capital.


The duration of the operations will be 24 months, including a 12-month grace period and 12 months for repayment, for all companies interested in participating in the program.


According to the BNDES, medium and large firms, with projects calling for resources greater than US$ 3.4 million (10 million reais), will receive credit directly from the Bank, up to a US$ 34.1 million (100 million reais) limit.


The project should contain a plan for creating openings on the job market. The interest rate will be reduced as the agreed-upon employment target is met.


For micro and small companies, the loans will be limited to US$ 34.1 thousand (100 thousand reais) and US$ 170 thousand (500 thousand reais), respectively.


Unlike the larger firms, these companies will not be required to present a job creation plan, since they are acknowledged to be generators of employment and income in the country.


Translation: David Silberstein
Agência Brasil

Tags:

  • Show Comments (0)

Your email address will not be published.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

On the Road

Car manufacturers from around the world have been investing feverishly in Brazil. The country ...

Snubbed and Excluded from Brazil and Friends Club US Applauds New Alliance

Latin American and Caribbean nations are to set up a new regional bloc of ...

We Need the Bomb

The Nuclear Non-proliferation Treaty, in force since 1970, became obsolete overnight in 2002. It’s ...

Anemia Afflicts Half of All Brazilian Children

Brazil’s Pastoral Commission for Children estimates that around 50% of poor Brazilian children suffer from ...

South American Nations Invited to Be Part of Venezuela-Brazil Pipeline

The Brazilian Minister of Mines and Energy, Silas Rondeau, says that a technical report ...

Brazil’s Northeast Gets New Wine Technology Center

Brazil’s grape and wine production in the Valley of the São Francisco River is ...

MST, the Brazilian Landless Workers Movement

Lula Is Back. Now Is the Time for Brazil to Demand Changes

Now that the election has passed, the votes counted, and the winners and losers ...

Newspaper and Radio Owner Executed Gang-Style in Brazil Northeast

Brazilian media owner and radio host José Givonaldo Vieira was shot and killed by ...

Brazil Urged to Cut Interest Rates to Prevent Dollar from Falling Further

A group of former government financial officials and economists from the Latin America suggested ...