Friday, January 25th 2013 - 07:34 UTC

Brazil development bank plans to invest almost a trillion dollars in next three years

Brazil’s Social and Economic Development Bank (BNDES) has plans to invest 1.858 trillion Reais (approx 906bn dollars) between 2013 and 2016. In 2012, total investments amounted to approximately 156 billion Reais, up 12% compared to 2011, and a total of 2.394 trillion Reais was invested between 2008 and 2012.

President Coutinho: “on track to accelerate growth”

The figures were released by the president of the bank, Luciano Coutinho, at the head office in downtown Rio de Janeiro.

The figures do not include the housing sector.

“In this area, we believe that investment is a little stronger than the current situation. We're seeing an improvement and we're on track to accelerate growth,” said Coutinho, who guaranteed that the record level of consultations and approvals of new projects shows a willingness to invest, with increases of 60% and 58%, respectively, compared to 2011.

Among sectors financed by BNDES, the manufacturing sector received the highest investment in 2012, totaling 847 billion Reais, and will see be recipient to most loans in the next three years.

Infrastructure absorbed 359 billion Reais in 2012, with a further 498 billion Reais expected to be invested between now and 2016. BNDES supplied the service sector with 159 billion Reais last year and future investments are expected in the order of 219 billion Reais.

The remaining sectors together received 1.858 billion Reais and should receive a little over another billion in the next three years.

The volume of funds released to micro, small and medium enterprises was the largest in the bank's history, totaling 50.1 billion Reais.

Coutinho said that efforts to beef up Brazil’s infrastructure ahead of the 2014 World Cup and 2016 Olympic Games are driving the increase demand for BNDES lending and anticipated that Brazil has further plans to auction new concessions to operate airports, highways, ports and railways that will require heavy investments by winning bidders, and could pave the way for private sector involvement.

“One of the strongest factors in the acceleration of investments in the introduction of new concessions”, said Coutinho. “Concessions represent an opportunity to share the financing of these investments with capital markets”.

He added that infrastructure bonds and other financing debentures will be tested in 2013 to see whether they are viable means for such projects.

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1 ChrisR (#) Jan 25th, 2013 - 08:06 pm Report abuse
Brasil and her attempts at 'economic' controls leave them looking like a child in a sweet shop: unable to make their mind up what to pick.

It will never improve until the idiot Mantega is replaced with someone, anyone, who can think cohesively and act determinedly on the whole sorry mess.

I am beginning to think that this is going to be Dilmas Achilles heel.
2 Brasileiro (#) Jan 25th, 2013 - 09:24 pm Report abuse
Hahaha. CryingR, do you are God? Your true is better than our true? Dilmas Achilles heel, or Achilles heel for you, and Europeans Speculators? “ Nossos juros baixaram e isto está transformando em risco a aposentadoria de milhões de idosos europeus que gostariam de perpetuar as estratosféricas rentabilidades obtidas por seus fundos de pensão. O que importa é que cada vez mais somos um país soberano, independência não é algo que cai do céu. Ela é construída dia a dia, sol a sol. Ela é conquistada. ”
3 GeoffWard2 (#) Jan 26th, 2013 - 04:01 pm Report abuse
BNDES would be well advised to inject development cash into Brasil's small and medium sized technology industries - to enable the best available state-of-the-art production techniques to become more commonplace in Brasil.
Too many home-produced products are of secondary standard.

Too much taxpayer's cash has, in recent years, been given by BNDES to the big, originally Brasilian, multinationals.
4 ChrisR (#) Jan 26th, 2013 - 06:19 pm Report abuse
3 GeoffWard2

But that would involve someone in government THINKING and making DECISIONS!

The fact that it would be the correct thing to do would be ignored.

I see we have the Brassiere back again. He still thinks I am a speculator! At least (according to him) you are all working from sunrise to sunset: I wonder what the night shift auto workers are doing then? Funny, funny guy.
5 Brasileiro (#) Jan 26th, 2013 - 07:01 pm Report abuse
For you....bad investor
6 ChrisR (#) Jan 26th, 2013 - 08:09 pm Report abuse
5 Brassiere
I take it you are replying to me? It would be helpful to give the number and tag of the post, like I have for you, to prevent confusion.

I refer to confusion because you link to something that happened 274 years ago. I much prefer to remain in the present.

But, AGAIN, you have failed utterly and completely to provide a sensible reply to my post @ 1 above. I take it that you are incapable of holding a sensible dialogue, preferring to rely on assumptions which are incorrect and personal abuse.

I do hope that not all Brasilians are as lacking in intellect as you: it will make Dilmas’ role so much harder if they are.

May I suggest that you spend some time in a school of further education to better understand the nuances of economies and the complexity that comes with a country as big as Brasil.

Dilma, who I have every respect for despite her involvement in the murder of an American Military Officer in front of his wife and children, has made a very good start in most areas but sadly not in the financial sector of her government. Fortunately you seem to be in the minority, certainly, argies aside; there is no-one else like you on MP thank goodness. Let us all be thankful for small mercies.
7 Brasileiro (#) Jan 26th, 2013 - 09:01 pm Report abuse
8 GeoffWard2 (#) Jan 27th, 2013 - 09:57 am Report abuse
Ódios aplacados
Make it today, guys.

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