BNDES implements interest rate cuts to energize export financing

In a move aimed at revitalizing export financing initiatives, the Brazilian Development Bank (BNDES) has announced a substantial reduction of up to 60% in the spread of operations within the BNDES Exim Pre-shipment line. This initiative, tailored to support Brazilian enterprises engaged in exporting goods, was announced on Thursday (22).

The bank revealed that it concluded 2023 with a record-high of R$13.5 billion in approved export support operations, marking a remarkable 176% surge compared to the preceding year of 2022. Concurrently, disbursements surged to R$8.7 billion, signaling a robust 168% increase over the previous year.

Effective from Thursday onwards, the reduced spread will be capped at R$150 million per operation, with an additional budget infusion of R$2 billion earmarked for this specific modality.

For export transactions involving efficient machinery, BNDES will levy an annual fee of 0.50% on operations, up to the ceiling of R$150 million, and 0.90% per annum on amounts exceeding this threshold.

In the case of other merchandise categories, BNDES’ fee structure will consist of a 0.60% charge (applicable to machinery 4.0 and goods with low carbon emissions or low carbon mobility) and a 0.80% fee for other product categories, with both rates limited to R$150 million per transaction. Beyond this threshold, the spread will be set at 1.30% per annum.

Under the BNDES Exim Pre-shipment line, BNDES approved a total of R$4.5 billion in financing operations throughout 2023. Notably, the bank greenlit 55 operations during this period, significantly surpassing the 35 operations approved in the preceding four-year period from 2019 to 2022. Total disbursements under this line amounted to R$5.9 billion for the year, reflecting a robust 79% increase compared to the aggregate disbursed in the previous four years.

Source: Valor Econômico

Click here to read the original news report: https://valor.globo.com/brasil/noticia/2024/02/22/bndes-aumenta-financiamento-para-exportacao-e-reduz-spread-dos-exportadores.ghtml

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