Brazil’s BNDES Makes Record US$ 50 Billion Loans, Most for Infrastructure

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Federal road being repaired in Brazil Brazil's BNDES (Brazilian Development Bank) (BNDES) loaned a total of 78,8 billion reais (US$ 49.9 billion) during the 12-month period ending in June, representing growth of 34% over the previous 12 months. The performance was record-breaking, as the bank disclosed August 7.

According to a press release issued by the institution, the figure "reflects the effects of the growing investment cycle underway in the Brazilian economy." Total approved loans, but not necessarily effected yet, reached 111.8 billion reais (US$ 70.8 billion) during the same period, another record-high figure.

Financing for the infrastructure and industry sectors totaled 63.7 billion reais (US$ 40.3 billion) in the 12-month period ending in July, of which the infrastructure sector answered to 32.5 billion reais (US$ 20.5 billion), 80% more than in the previous period.

The areas of ground transportation and electric power were those that borrowed the most. With regard to the industrial sector, the highlights were the segments of food and beverages, chemical and petrochemical products, and textiles and clothing.

In the first half, disbursements totaled 37.9 billion reais (US$ 24 billion), another record-breaking figure. According to the bank, 42% of that total went to the industry sector and 40% went to infrastructure, the highlights being ground transportation and electric power.

Approved loans reached 51.2 billion reais (US$ 32.4 billion) in the first six months this year, 34% more than in the same period last year.

According to the banking institution, disbursements should continue to grow, as the value of approvals has remained higher than that of effective loans. The infrastructure sector should account for the largest portion of loans taken.

Anba

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