Brazil's BNDES (National Bank for Economic and Social Development) should end 2007 having loaned 62.5 billion Brazilian reais (US$ 34.3 billion). There is currently a volume of 90 billion reais (US$ 49.4 billion) in projects approved and funds loaned over the last 12 months have already reached 60 billion reais (US$ 32.9 billion).
Considering the good performance of the last 12 months and the average growth in the rate of fixed direct investment in the country, 14% a year, forecasts for 2008 show that the bank's loans may reach 70.5 billion reais (US$ 38.7 billion), out of a total private sector investment of 125 billion reais (US$ 68.6 billion).
BNDES president Luciano Coutinho recognizes that there is a difference between demand and offer. "Among the volume of projects approved and the volume of funds loaned there is a difference of 30 billion reais (US$ 16.5 billion). Therefore, it is natural for the volume of loans to rise. We are certainly going to increase the loans next year."
During a luncheon with Brazilian President, Luiz Inácio Lula da Silva, Coutinho heard a suggestion that the "BNDES should speed up its activities, maintaining the support to the growing investment".
He also admitted the possibility of establishing a loan target of 100 billion reais (US$ 54.9 billion), as suggested by Lula.
"Of course, if we maintain the growth identified over the last three years, it (the target) may reach the level the president suggested. But I don't yet want to make a prognosis," stated Luciano Coutinho, who preferred to remain conservative.
He added that he "would like to get there, but we have to work week by week, month by month."