Chief of BNDES Bank Guarantees Hot Economy for Brazil in Coming Months

The president of Brazil’s National Economic and Social Development Bank (BNDES), Guido Mantega, said that he discerns “clear signs” that the Brazilian economy will heat up in the second half of the year.

“All the conditions favorable to this are in place, and the bank has firm indications that this will occur,” he affirmed.


As one of the indications, he referred to the number of consultations registered in June, 225% more than in June, 2004.


According to Mantega, the BNDES is already getting projects that he expects to be approved in the steel, paper and cellulose, petrochemical, and telecommunications sectors, although there are also loan requests from small and medium-size companies.


He announced the approval of a US$ 420 million (1.34 billion reais) loan to the TIM Cellular Company to expand its coverage area and increase the capacity of and modernize its service network. In Mantega’s opinion, this project should have a positive impact on the bank’s performance in July.


Mantega said that, since the bank is responsible for 60% of the country’s long-term credit activity, this is a good measuring instrument.


“With this, I want to refute the prognoses that are saying that the political crisis is having an effect on investments. This is not true. It is not correct. It doesn’t correspond to the data we are verifying here at the bank.”


Mantega guaranteed that the analysis of performance data in June reveals that “the crisis will be brief and is not affecting the economic indicators and the disposition of investors.”


He believes that this year’s BNDES investment budget of US$ 25.3 billion (R$ 60 billion) can be executed, since, in general, one third is allocated in the first half of the year, and two-thirds, in the second half.


“Chiefly because there was a monetary policy whose objective was to decelerate the economy, and it did in fact decelerate in the first half of the year.


“But now there is a reversal, a change, as a result of a situation in which inflation is under control, and monetary policy will consequently adjust to this favorable context.”


ABr – www.radiobras.gov.br

Tags:

You May Also Like

You Need to Work Harder, UK University Tells Brazilians on Scholarship

The University of Southampton, in the United Kingdom, has complained about the lack of ...

Brazil Wants to Build a Disneyland in Capital Brasí­lia

Brazilian officials are talking with the Walt Disney Co. about a deal that would ...

Over 30% of Brazilian Petrobras’s Pre-salt Wells Are Dry, Says Newspaper

Brazil's state-controlled oil and gas multinational Petrobras announced this Tuesday, July 28, in an ...

Brazil’s Trade Surplus Reaches US$ 672 Million in 2007

According to information disclosed today by the Brazilian Ministry of Development, Industry and Foreign ...

Brazil Raises US$ 1.3 Billion in Bonds Overseas

Brazil’s National Treasury successfully concluded a sale of Brazilian government bonds known as Global ...

Nissan Brazil Invests US$ 150 Million and Introduces New Car

Japanese vehicle assembler Nissan has just announced the production of a new model at ...

Brazil, a Leader in Medical and Veterinary Homeopathy

The use of homeopathic medicines in farm animals is a good thing. In cows ...

Brazil Finds Cheaper Way to Make Asphalt

The Military Engineering Institute (IME), an army university in the city of Rio de ...

Fear of the Dark

By Brazzil Magazine Ideology is an unconscious tendency underlying religious and scientific as well ...

Brazilian Army Takes Position in Rio to Secure City

The Brazilian federal government has heard Rio's appeals for more security and is sending ...