From the Newsroom*
São Paulo – The Bank of Brazil Export Financing Program (Proex) helped 271 Brazilian companies export in the first five months of this year. Over half of the companies benefited, 61%, were micro and small. The program financed US$ 134.6 million in exports in the period, meaning a growth of 30%, in terms of values, over January and May last year.
The companies that participate in the program receive financing of 100% of the value exported, for payment in up to two years. If the period for payment is greater, a total of 85% may be financed. The percentage is also reduced in case the product has less than 60% nationalization. According to the Foreign Trade director of the Bank of Brazil, José Maria Rabelo, the program is advantageous for companies interested in entering the foreign market and competing with suppliers from other countries.
According to a study by the Brazilian Ministry of Development, Industry and Foreign Trade, in the first five months of this year, the number of Brazilian companies that had their products and services sold on the foreign market reached 13,960, against 13,865 in the same period last year. A total of 95 new exporters were added to the list between January and May this year.
In January this year, 8,227 Brazilian companies were exporting. In February there were 8,580, in the month of March, 9,127, in April, 9,000 and in May, 9,157. Last year, the figures were 7,827 in January, 8,008 in February, 9,131 in March, 8,536 in April, and 9,026 in May. Therefore, every month this year, except for March, the number of exporters was greater than last year.
According to the study, it was not only the quantity of export companies that rose, the values also grew. A total of 1,150 companies that exported less than US$ 60,000 in 2004 and had already exceeded the figure at the beginning of this year. According to the study, of the 6,510 exporters that had revenues of up to US$ 60,000 with exports last year, just 5,360 continued in this category in 2005.
Despite the stronger real, the Brazilian currency, against the dollar, there is still growth of penetration of Brazilian industries in the foreign market. The Brazilian trade balance surplus is already US$ 18.995 billion in the year, representing an increase of 30.90% when compared to the same period last year.
Total exports reached US$ 51.974 billion, a growth of 23.6% in comparison to the same period last year. Imports in turn had reached US$ 32.979 billion, representing an increase of 19.8%.
*With information from Agência Sebrae and Agência Brasil. Translated by Mark Ament
