Brasília – Investment by Brazilian state-owned companies grew 47.8% in the first half compared with the same period last year. According to figures disclosed yesterday (30th) by the Ministry of Planning, state-owned enterprises have invested 29.7 billion Brazilian reals (US$ 15.6 billion) from January to June, as against 20.1 billion reals (US$ 10.5 billion) in the first six months of 2008.
A report elaborated by the Department of Coordination and Control of State-Owned companies (Dest), a branch of the ministry, was published in the Official Gazette. The survey showed that a significant share of the increase was the result of an expansion in housing credit granted by fostering agencies, which went from 4.9 billion reals (US$ 2.5 billion) in the first half last year to 10.2 billion reals (US$ 5.3 billion) this year.
According to the ministry, the increase in housing financing is mainly due to loans granted by the Federal Savings Bank and the Brazilian Development Bank (BNDES) for the program "Minha Casa, Minha Vida"(My House, My Life), which aims to build 1 million housing units for low-income families.
When compared to the annual investment budget for state-owned companies, the rate of accomplishment also improved. The funds spent in the first half are equivalent to 37.4% of the budget of 79.4 billion reals (US$ 42.2 billion) for 2009. In the first half last year, the rate was 32%. In 2008,the budget was 62.9 billion reals (US$ 33.4 billion).
According to the Brazilian Ministry of Planning, 23.5 billion reals (US$ 12.4 billion) in investment by state-owned companies so far in 2009 were financed using funds belonging to the companies themselves. The amount is equivalent to 78.9% of total investment this year. Only 1.8% of the volume spent was invested using funds from the National Treasury.
According to the ministry itself, there are currently 68 federal state-owned companies in Brazil. Out of that total, 59 are in the productive sector and nine are in the financial sector. The budget for this year forecasts investment in 307 projects and 270 activities.
*Translated by Gabriel Pomerancblum
