São Paulo – The Brazilian Development Bank (BNDES, in the Portuguese acronym) reported this Thursday (14th) that it supplied R$ 33.3 billion (US$ 11 billion) worth of financing in quarter one 2015, down 24% from Q1 2014.
The amount of loan quotations was down 47% year-on-year in Q1, to R$ 21 billion (US$ 6.9 billion). Loans approved reached R$ 25 million (US$ 8.2 million), down 46%. Quotations reflect corporate interest in borrowing long-term, and loans approved are those still pending processing.
According to BNDEs, the results took a hit from its new operational policy, whereby the Long-Term Interest Rate (TJLP) has a lessened influence on financing. The TJLP is lower than general market rates. Moreover, the maximum rate the BNDES can cover for any given project has been reduced.
*Translated by Gabriel Pomerancblum
