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Brazil’s Development Bank to Fund US$ 34 Billion in Projects This Year

BNDES 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 InΓ‘cio 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."

 

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  • Show Comments (4)

  • Lottie -x

    Im Bored.
    Im At School Bored I Just Thought Ide Write In This This !
    Haha !! x πŸ˜€

  • João da Silva

    ch.c
    [quote]That is the eternal Brazilian problem : JEALOUSY AND ENVY !
    [/quote]

    Not the first time I have heard this expression! Just read Ricardo AmaralΓ€β€šΒ΄s article and my comment. He means well for Brazil,but………………… πŸ™

  • CH.C.

    To Joao….. !
    Very good question ! πŸ˜‰

    And you still cant build proper transportation infrastructures ! πŸ˜₯

    This said, most BNDES loans are at well below the Selic rate, and some of this loans go to farmers. Which means you are
    subsidizing your farmers but criticize when developed nations do the same.
    Lets face it, since we are wealthier we can subsidize more by simple maths, but you dont think it is normal.
    That is the eternal Brazilian problem : JEALOUSY AND ENVY !

  • João da Silva

    Brazil’s Development Bank to Fund US$ 34 Billion in Projects This Year
    If such is the case, why do we need the foreign investment?

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