From the Newsroom
São Paulo – The Brazilian Development Bank (BNDES) is planning to make US$ 16.8 billion available for financing, according to estimates yesterday (15). The figure, if confirmed, will be 43% larger than that registered in 2003, when the total made available was US$ 11.7 billion.
"The BNDES is prepared for the challenge of being one of the main federal government instruments for Brazilian economic growth," said the Bank vice president Darc Antônio Costa, through a spokesperson for the institution.
The BNDES evaluation is that, with stabilization and a return to trustworthiness in the economy, conditions have been created for businessmen to plan long-term investment.
On the other hand, investment in infrastructure, sanitation, and telecommunications, planned by the Presidential Palace for the year, will be greatly supported by the BNDES. With this, the bank intends to take on an important part as a political government agent.
Sectors
In this point of view, the bank forecasts an 89% increase in financing turned to the infrastructure sector for 2004. In 2003, investment in this sector totaled US$ 2.9 billion. In the case of industry, the credits, last year totaling US$ 5.6 billion, should rise by 28%. In the case of the agricultural sector, the forecasted increase is 24% over the US$ 1.6 billion made available in 2003.
The BNDES is also planning to increase investment in education and health by 80%. Last year, these sectors received US$ 130 million.
Export
In the case of export, forecasts for 2004 have not yet been closed, but initial forecasts show that investment should rise from the US$ 3.9 billion made available in 2003 to US$ 4.9 billion.
Funds for export in 2003 were 8% greater than in 2002, according to the bank. Of the total last year, US$ 776 million were for the auto industry, a 441% increase with regard to the previous year; US$ 121 million to the civil construction industry, 222% greater than in 2002; US$ 153 million for the chemical product sector, a 181% growth in contrast to the year before last; and US$ 110 million for the leather goods artifact sector, 82% above the 2002 result.
Balance
With regard to the balance for last year, apart from making available US$ 11.7 billion, the bank also dished out US$ 711 million in "extraordinary" National Treasury funds under the FAT Export program. In this case the institution only transfers the money.
The total number of letters inquiring about financing presented in 2003 totaled US$ 15.2 billion, a 14% growth in comparison to 2002. In the bank evaluation, this shows an increase in business disposition to invest.
Values of projects that fulfilled the financing demands totaled US$ 13.8 billion, 34% above the 2002 value. Approval, in turn, totaled US$ 13.5 billion, a 17% increase in relation to the previous year.
The difference between money made available (US$ 11.7 billion) and approval (US$ 13.5 billion) is due to the fact that credits approved in one year are not necessarily made available that year. Generally BNDES financing is made available in installments that cover a period of over one fiscal year. Therefore, the total effectively made available in 2003 is also relative to projects approved in previous years. In the same way, the total approved last year will also have an effect on the year of 2004 and in future years.
According to bank information, of the US$ 11.7 billion made available in 2003, US$ 3.5 billion was destined to small, and medium companies, a 22% increase over that in 2002. With regard to the machinery and equipment sector, loans totaled US$ 1.9 billion. In the previous year, the total was US$ 1.4 billion.
"The final result for 2003 shows an expressive growth in projects that could have been and that were financed. This shows that the BNDES restructuring has made the bank more agile and capable of answering to more efficiently to business needs," stated Costa, according to a spokesperson for the institution.
In the first half of 2003, BNDES financing was withheld due to this restructuring, a fact that caused great criticism to the new institution directory.
