BNDES increases weight in the total investments of the country
Folha de S. Paulo - 02/03/2009
The main instrument of the government to fight the effects of the crisis, the BNDES (National Development Bank) already represents nearly 14% of the total investments in the country. Last year, it lent nearly three times the total of operations contracted with the IBRD (International Bank for Reconstruction and Development), which, together with the IDA (International Development Association), form the World Bank. In 2008, the BNDES released R$ 92.2 billion (nearly US$ 40 billion). In the fiscal year of 2008, the IBRD made a commitment for a total of US$ 13.468 billion in 99 operations in 34 countries, with gross disbursement of US$ 10.5 billion. The IADB (Inter-American Development Bank) lent US$ 7 billion. The BNDES, the IBRD and the IADB are institutions with different profiles, but the comparison shows how much the Brazilian bank grew and indicates the increase of the presence of the State in the economy. From 2005 to 2008, its total of loans practically doubled. With the injection of R$ 100 billion (US$ 43.5 billion) in funds announced by the government for the 2009-2010 period, the expectation is that it gets to concentrate even more the companies demand for credit . The bank has operated even in the short-term credit offer, which historically is not part of its profile. The releases of the bank already represent 13.9% of the total investments, considering the data from January to September of last year. In 2006, its participation reached 9.6%. Traditionally, the bank has an anti-cyclic role ‑ at times of uncertainty it increases its operations. The very bank affirms that in a situation of greater concentration of the demand in the BNDES, it may lend R$ 120.8 billion (US$ 52.5 billion) this year and R$ 136.2 billion (US$ 59.2 billion) in 2010. Critics evaluate the position the Government is taking is to replace the role of the private sector and that it is necessary to consider the limit of funds the bank can raise. For João Carlos Ferraz, Planning Director of the bank, the trend is that the bank stabilizes at a level near R$ 90 billion (US$ 39.1 billion) to R$ 100 billion (US$ 43.5 billion) in credit.