08/08/2008 14h46

BNDES disbursements grow 56%

O Estado de S. Paulo – 08/08/2008

The works of the Growth Acceleration Program (PAC) were responsible for R$ 49.7 billion (US$ 31.7 billion) of the loans of the Brazilian development bank (BNDES) until July 30, from which R$ 34.7 billion (US$ 22.1 billion) were either approved or contracted. The total, which covers 170 projects, may grow even more until the end of the year. According to the president of the bank, Luciano Coutinho, there are still requests that represent another R$ 20 billion (US$ 12.7 billion) in other undertakings of the PAC. The weight of the infrastructure businesses also reflected on the disbursements in the first half of the year. According to the data released yesterday, R$ 38.6 billion (US$ 24.6 billion) were released, 56.2% more than in the first half of 2007. From that total, R$ 15.2 billion (US$ 9.7 billion) were destined to the sector, which represents growth of 83.2% compared to the same period of last year. The industry consumed R$ 16.1 billion (US$ 10.3 billion), growing 42.6% over the accumulated from January to June 2007. The service sector received R$ 3.8 billion (US$ 2.4 billion) in the half and had an increase of 41.4%. Coutinho also called the attention to the recovery of the agriculture and livestock sectors, which received R$ 2.8 billion (US$ 1.8 billion), growth of 15.8%. The releases in the 12 months until June, which achieved the record of R$ 78.8 billion (US$ 50.2 billion), grew to the same extent, 34% compared to the 12 preceding months. The figures of the accumulated in 12 months made it even clearer the need the BNDES has to increase the budget for this year. Coutinho admitted "the demand for financings should exceed R$ 80 billion (US$ 51 billion)" and he will "look for alternatives". In order to ensure extra resources, he said he will ask for a budget increase in the next Meeting of the Board, on the 11th. According to Coutinho, the BNDES may seek money both in the internal and in the foreign markets.