Moody's Investors Service lowered this week the long-term issuer ratings of Brazilian state banks BNDES and Caixa Econômica Federal, citing their eroding capital position after years of rapid credit expansion, but spared the also government controlled Banco do Brasil.
Company inquiries about tapping Brazil's BNDES state development bank for loans is up 30% the past two months, a strong sign of potential growth in the near future for a sluggish economy, the bank's president revealed in the US.
Brazil's government unveiled a host of new measures on Wednesday aimed at increasing investment and consumption as it expanded efforts to boost a sluggish recovery in the world's sixth-largest economy.
Brazil's government unveiled on Wednesday measures to lure up to 133 billion Reais (66 billion dollars) in private investment for new roads and railways needed to unclog the country's transportation bottlenecks.
The national bank for economic and social development, BNDES, Brazil's largest source of long-term credit for companies, is ready to disburse loans at a faster pace in the years ahead to prop the economy, the bank's top executive said on Monday.
Lending by Brazil’s state development bank BNDES unexpectedly rose in the first five months of the year, led by disbursements to infrastructure projects, in an encouraging sign of investment recovery in Latin America's largest economy.
Luciano Coutinho president of Brazil’s state development bank BNDES, said the country has benefited from the recent weakening of its currency and a further drop would be better, according to newspaper Folha de Sao Paulo.
Brazil's government has taken measures so that economic growth reaches at least 2.5% in 2012, said Finance Minister Guido Mantega following the announcement of new economic stimulus measures that are expected to accelerate the economy in the second half of the year.
The Brazilian government plans to buy over a third of the country’s output of buses and reduce borrowing costs for state-funded investments to a record as part of a new round of measures to revive stalled growth.
Brazil’s inflation rate fell more than economists expected in May, pushing the annual pace below 5% for the first time since September 2010. Monthly inflation slowed to 0.36% from 0.64% in April.