MercoPress. South Atlantic News Agency

Brazil promotes manufactured exports with BNDES incentives

From this week, the reduced spread will be capped at R$150 million per operation, with an additional budget infusion of R$2 billion earmarked for this modality.

Brazil's Development Bank, BNDES, with a larger annual turnover than the World Bank is propping the country's manufacturing exports with new incentives tailored to support companies engaged in global trade. Under the new conditions the bank is implementing a substantial reduction of up to 60% in the spread of operations within the BNDES Exim Pre-shipment line.

The bank revealed that it concluded 2023 with a record-high of R$13.5 billion in approved export support operations, marking a remarkable 176% surge compared to the preceding year of 2022. Concurrently, disbursements surged to R$8.7 billion, signaling a robust 168% increase over the previous year.

Effective from this week, the reduced spread will be capped at R$150 million per operation, with an additional budget infusion of R$2 billion earmarked for this specific modality.

For export transactions involving efficient machinery, BNDES will levy an annual fee of 0.50% on operations, up to the ceiling of R$150 million, and 0.90% per annum on amounts exceeding this threshold.

In the case of other merchandise categories, BNDES’ fee structure will consist of a 0.60% charge (applicable to machinery 4.0 and goods with low carbon emissions or low carbon mobility) and a 0.80% fee for other product categories, with both rates limited to R$150 million per transaction. Beyond this threshold, the spread will be set at 1.30% per annum.

Under the BNDES Exim Pre-shipment line, BNDES approved a total of R$4.5 billion in financing operations throughout 2023. Notably, the bank green lit 55 operations during this period, significantly surpassing the 35 operations approved in the preceding four-year period from 2019 to 2022. Total disbursements under this line amounted to R$5.9 billion for the year, reflecting a robust 79% increase compared to the aggregate disbursed in the previous four years.