A Fund to Bolster Trade Between Brazil and Venezuela

Brazil’s National Economic and Social Development Bank (BNDES) is studying the creation of the Brazil-Venezuela Fund, a mechanism that will bolster the security of trade between the two countries.

The new fund should also ensure that the line of credit determined by President Luiz Inácio Lula da Silva can be made fully operational.


Half the resources for the Fund will come from the BNDES; the other half will come from the Venezuelan Development Bank.


This information was revealed yesterday by the president of the BNDES, Carlos Lessa, in an interview on national radio.


According to Lessa, this line of credit was established over a year ago by President Lula, who approved loans of up to US$ 1 billion for Brazilian trade with Venezuela.


The problem, in his view, has to do with the amount of collateral importers can count on, particularly when the transactions entail trade in more sophisticated items, such as components of construction projects, equipment, and machinery.


At the moment, Lessa explained, “what prevails are the guarantees provided by the Venezuelan Central Bank, covering up to US$ 200 million, an amount that has already been used for projects in Venezuela, such as the third subway line in Caracas and two hydroelectric plants.”


But “many other important opportunities exist for the country to expand its sales to Venezuela,” he declared.


In Lessa’s view, since there are many other products that the Venezuelans want to buy from Brazil, one must consider how to stimulate their expansion.


He said that Venezuela is interested in purchasing a dynamo and building other hydroelectric plants, in addition to buying machinery and tractors.


“But the difficulty is the collateral,” he recalled.


According to him, “the fund will enable these guarantees to materialize.”


Agência Brasil
Translator: David Silberstein

Tags:

You May Also Like

Villaventura, an Ambassador of Brazil’s High Couture

Brazilian clothing designer Lino Villaventura, of national and international renown, started his career in ...

Brazil Breaks Up Ring Offering Sex Tour Packages

Yesterday the Brazilian Federal Police (PF) arrested a gang accused of sexual tourism in ...

Hoping These Poor in Brazil Will Inspire More than Just a Liberal Guilt Trip

The Scalabrinian Order of the Catholic Church was founded in Italy in 1887 by ...

Colniza (Mato Grosso, Brazil) residents inaugurate new bridge

Murder in Brazil Is Not Just a Big-City Problem Anymore

It's common knowledge that while Brazil's largest cities, like São Paulo, Rio and Salvador, ...

Muiza’s Fitting Tribute to Brazilian Music Legend Moacir Santos

At the time of his passing in August 2006 at 80 years of age,  ...

Amazon Ablaze

IBAMA, the Brazilian Environmental Protection Agency is promoting what they call "sustainable industrial logging" ...

Haitians Trying to Enter Brazil Hospitalized in Coma for Malnutrition

There are 35 Haitians in Brasileia, state of Acre, a Brazilian frontier town, awaiting ...

Recession Fears Knock Down Markets in Brazil, Mexico and Argentina

In Brazil and Latin America markets plunged on Wednesday, October 22, on fears of ...

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

From January to September Brazil's trade surplus  totaled US$ 21.275 billion, a figure 8.1% ...

Brazil’s Açaí­ Makes Further Inroads Among Health-Minded Americans

US-based Caffe Classico Foods  announced that it is going to start selling its Belizza ...

WordPress database error: [Table './brazzil3_live/wp_wfHits' is marked as crashed and last (automatic?) repair failed]
SHOW FULL COLUMNS FROM `wp_wfHits`