MercoPress. South Atlantic News Agency

Brazil's plane manufacturer Embraer expects to obtain a US$ 600 million credit from government

The bailout involving BNDES should be decided by the start of July, and Embraer could receive some US$400 million of that aid package

Brazilian plane manufacturer Embraer SA, the world's third-largest commercial jet builder, should obtain US$600 million in credit lines from Brazil's state development bank BNDES and private banks in June, government sources said on Sunday.

The loans will finance production to meet demand for passenger planes and executive jets, they said speaking on condition they were not named.

A spokesman for Embraer confirmed that the company is in talks on financing proposals from the BNDES and private bank in Brazil and abroad to aimed mainly at providing working capital to cover plane exports.

Embraer said it has firm orders for the years ahead worth US$16 billion on Mar 31.

“This shows how sound and balanced the company is in the midst of the crisis hitting the aviation sector,” one of the sources said.

“No one knows what the future holds in store for commercial aviation, but with less people flying it could well be an era of smaller planes and private aircraft,” the source added, pointing to Embraer's forte as a leading maker of regional jets.

The Brazilian government has been negotiating a financial bailout for Brazil's airlines to help them cope with the dramatic loss of business during the coronavirus pandemic.