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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: Pogeu Mahone who wrote (48232)	4/7/2009 10:19:13 AM
From: elmatador	Respond to of 219952

Brazil Devt Bank BNDES Has Greater Export Credit Role -Estado RIO DE JANEIRO (Dow Jones)--Brazil's Development Bank, or BNDES, is taking on a larger role in providing export credits, the Estado news agency reported Tuesday. The bank's planning director, Joao Carlos Ferraz, said the export credit market still wasn't showing any signs of returning to normal. The state bank's export finance provision last year jumped to 6.59 billion Brazilian reals ($2.84 billion), 54% more than the previous year, basically because of the drying up of private credit for foreign sales, said Ferraz. "We have had to temporarily replace this type of financing, but the banks haven't come back yet. They ran off with the crisis," he said. Ferraz said the bank wouldn't change its role in this area until the economic scenario returns to stability. "If BNDES doesn't lend, who will? God?" he said. Ferraz also said the bank was likely to easily exceed the BRL100 billion mark in loans released in 2009. Most of the money will continue bound for new investment or expanding capacity of existing factories, but this year loans will be used in areas not usually supported by the bank before the global economic crisis, such as credit for company cash flows, he said. Ferraz said the bank's focus will be kept on infrastructure, raising industrial capacity and innovation, but he recognized the crisis may have temporarily upset that viewpoint. Investment in innovation has stopped, Ferraz said, and increasing productive capacity had slowed down, but BNDES was still strong in infrastructure, mainly because of the government's multibillion dollar "Growth Acceleration Program," or PAC. PAC is meant to spend some $100 billion a year in upgrading Brazil's infrastructure. Currently, Ferraz said, BNDES is more involved with backing the government's strategy of maintaining economic activity, due to the financial crisis. -By John Kolodziejski, Dow Jones Newswires; 55-21-2586-6086; John.Kolodziejski@dowjones.com