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Brazilian government continues to subsidize loans to big corporations

Monday, July 4th 2011 - 05:12 UTC
Full article 5 comments

Brazil's state development bank, BNDES, is lending to companies at the lowest rate relative to the country's benchmark in two years, undercutting President Dilma Rousseff's efforts to curb inflation, revealed the Sao Paulo financial press. Read full article

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  • GeoffWard2

    Let's hear the investment stories where BNDES invests public money in the small, hi-tech Brasilian companies, where real growth can help the common man develop and grow.

    Just giving the people's money to the already super-rich is pretty poor strategy and poor tactics for the development of a whole country.

    Jul 04th, 2011 - 11:40 am - Link - Report abuse 0
  • Fido Dido

    Why don't you do your own homework? Again you're to lazy and all what you can do is bitch in front of a computer. Old man, why don't you do proper homework about the country you live and barely understand? Ah wait, you're to lazy like most ugly old fashion brits who think high about them self.

    Jul 04th, 2011 - 05:27 pm - Link - Report abuse 0
  • Forgetit87

    “Just giving the people's money to the already super-rich is pretty poor strategy and poor tactics for the development of a whole country”

    You've never heard of the East Asian strategy of “picking the champion.” That's how Japan and S. Korea created large corporations and made them international players. Creating large enterprises and capturing shares of the international market is a valid and widely used development strategy as they are less vulnerable to international shocks than small companies. Thus they are also more reliable job creators.

    The bitching from the São Paulo financial market is understandable because if it was up to it, it would obviously not have to face competition from a fine, large bank that charges interest rates far below market's levels.

    Jul 04th, 2011 - 05:46 pm - Link - Report abuse 0
  • GeoffWard2

    . . . . and if you help thousands of small companies grow into big companies then you make them ALL less vulnerable to international shocks.
    Thus they ALL become reliable job creators.
    Much expansion, much taking on of labour, muito impostos.

    'Picking The Champion' is all very well if it is a Brasilian champion, but putting Brasil's Peoples' Money into foreign-owned companies - particularly FRENCH companies (OMG, where will it all end?!) seems a perverse policy, don't y' think.

    Jul 04th, 2011 - 06:01 pm - Link - Report abuse 0
  • Fido Dido

    large bank that charges interest rates far below market's levels.

    That's the power BNDES, a “public” bank what works similar like the state bank of North Dakota (only succesful state within the US and the only state with a national bank what is hated by washington D.C), though BNDS works on a bigger scale and is more powerful.

    Jul 04th, 2011 - 07:00 pm - Link - Report abuse 0

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