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
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