10/23/2008 09h43
BNDES to invest in house building
Gazeta Mercantil - 10/23/2008
A little before the beginning of the financial crisis, the Economic and Social Development National Bank (BNDES) accelerated the process of stock participation in Brazilian companies. The movement for state control is going to grow even more: the institution will support house building companies and studies how to enter the sector. An alternative that is considered almost certain is the purchase of stocks of house building companies, through the BNDESPar. The government's concern in announcing support measures to the house building sector has sound foundations in the economy. The sector employs 7% of the occupied people in the Country - 6.1 million people - and also corresponds to nearly 5.5% of the Gross Domestic Product (GDP), according to the Brazilian Institute of Geography and Statistics (IBGE). The focus on house building is new in the BNDES, because this role has always been the National Savings Bank's (CEF). Up until now the bank has not financed or supported house building companies with stock participation. It has participation in at least 180 companies, but does not work in the sector. The BNDESPar increased investments in company's capital by 25% in the first semester of the year - the equivalent to R$ 5 billion (US$ 2.3 billion). The investments in participations leaped from R$ 15.7 billion (US$ 7.1 billion) to R$ 20.9 billion (US$ 9.5 billion), according to the account value registered in the last financial balance of the institution. The market value, which shows the stock exchange activity, retreated from R$ 88 billion (US$ 40 billion) to R$ 86 billion (US$ 39.1 billion). The impact of the crisis in the assets portfolio will only be published by the bank at the publication of the statements of this year's second semester. Bank sources do not show any concern about the losses in the stock values, as the BNDES "does not buy assets with a short-term focus", but aiming at the "strategic development of the Country". In fact, the BNDES has already used the stocks portfolio to intervene in the management of companies, such as mining company Vale do Rio Doce. Recently, the bank has acquired stocks of Telemar and of ice storage plant Friboi.
