Rio de Janeiro – The Brazilian Development Bank (BNDES) announced this Tuesday (13) measures to simplify, streamline and expand the access to credit by micro, small and medium-size businesses (MPMEs, in the Portuguese acronym). According to the bank, the plan aims to boost economic growth, and to maintain and create jobs and income. The expected results include an increase of 20% in disbursements to this sector, meaning an additional BRL 5.4 billion (USD 1.62 billion) until the end of 2017. From January to October of this year, BNDES loaned BRL 21.9 billion (USD 6.58 billion) to MPMEs.
The director of Indirect Operations Division at BNDES, Ricardo Ramos, said that MPMEs are the sector that has suffered the most with the economic downturn. “The micro, small and medium-sized business is the one more likely to create jobs. The bank’s action of expanding credit access means to make resources available to a public that presents great social return,” said Ramos.
The package includes an increase in the revenue limit used to classify the MPMEs from BRL 90 million (USD 27.07 million) to BRL 300 million (USD 90.23 million). Plus, the Finame, BNDES Automático and BNDES FINEM credit lines for the purchase of machinery and equipment will be funded up to 80% based on the Long Term Interest Rate (TJLP, in the Portuguese acronym), which presents the most favorable funding conditions offered by the bank. The TJLP has 7.5% per year interest rates.
The package, among other measures, also includes: streamline of processes to reduce approval time for automatic operations from 30 to 2 business days; an increase in the maximum limit of the BNDES Card from BRL 1 million (USD 300,800) to BRL 2 million (USD 601,000); and a reinforcement of BRL 2 billion (USD 601 million) to Moderfrota, de funding line for agricultural machinery.
*Translated by Sérgio Kakitani
