Brazilian development bank pledges new financing line for industrial exports

May, 25, 2023 Posted by Gabriel Malheiros

Week 202321

Aloizio Mercadante, the President of the Brazilian Development Bank (BNDES), made an important announcement on Thursday, May 25th, in which he revealed new financing lines tailored for the industry, enabling the sector to access credit on terms comparable to those offered to agribusiness.

During an Industry Day event hosted by the Federation of Industries of the State of São Paulo (Fiesp), Mercadante advocated for an industrial version of the “Plano Safra,” the Agricultural Plan sponsored by the Brazilian government program that aims to provide financial support and incentives to the agricultural sector. He disclosed that the bank will provide R$ 2 billion in financing specifically for Brazilian exports.

The objective of this financing option is to reduce costs for exporters, thus enabling Brazilian products to gain new international markets. To achieve this, the bank will slash its spread by a remarkable 61%, representing the difference between company fees and funding fees. “We are going all out to cut the spread,” declared the BNDES President. He further emphasized, “We are essentially sacrificing the bank’s spread to support the industry in its export efforts.”

Additionally, another financing line worth R$ 2 billion, potentially expanding to R$ 4 billion, will be made available to the export industry under the same conditions as the agricultural sector. These conditions include a fixed interest rate of 7.5% per year, denominated in dollars, and a grace period of two years.

Source: Correio do Povo

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