MercoPress. South Atlantic News Agency

Leading Spanish bank ready to lend 10bn dollars for infrastructure in Brazil

Santander chairman Botin had only praise for Brazil and President Dilma Rousseff

Following a meeting with President Dilma Rousseff, Banco Santander Chairman Emilio Botin said that the Spanish bank has 10 billion dollars available to finance infrastructure projects in Brazil. He also anticipated that loan book growth at Banco Santander Brasil SA would be up about 10% in 2013.

“We’re making a great effort both advising and financing. We want to show that we can finance infrastructure projects to the tune of 10 billion dollars, which is an important sum in ports, highway, airports and railways”, said Botin.

He added that Santander Brazil participates actively of the PAC, Brazil’s long term Plan to Accelerate Growth which is focused on infrastructure projects.

“I’m very satisfied with the meeting I had with the President; Brazil has consolidated as a regional and global power, with solid institutions and a consolidated financial system”, added chairman Botin who praised Brazil’s macro-economic management.

“Brazil has sufficient margin to make all the necessary adjustments and has a government fully aware of what needs to be done and it will do it, as it has shown in repeated occasions”.

Botin said that investment in Brazil has been one of the major strategic decisions of the bank: “we have full confidence in Brazil and this country is one of the main legs of our global business”.

The banker also underlined the performance of Santander during the crisis years. “We never asked of financial support in any country and we have kept the level of dividends despite the crisis: 20 billion Euros to our shareholders in the last five years”.

However the CEO admitted that expansion in Brazil has not been without pain because the fusion with banks Real and Banespa, purchased during the last decade has taken longer than programmed.

“We have to catch 10% of the banking business in Brazil which has a very good blend of private and government banks. Our plans are to expand 10% annually in the next few years, which has helped consolidate us as the main foreign bank in Brazil”.

“Our great mistake would be not to be in Brazil, this is a great country steaming ahead and our bets are on Brazil and that it will continue to grow”, said Botin.

In effect the performance of Santander branch in Brazil has helped the overall corporation with 75% of profits coming from Latam’s largest economy. At one moment Santander had plans to sell assets in Brazil to meet commitments in other markets but with Brazilian government politeness and firmness the Spanish group was convinced to desist from such an initiative.