10/21/2008 15h33
BNDES will have US$ 1.4 bi for working capital
Valor Econômico 10/21/2008
The BNDES is getting ready to launch a credit line of capital working in the amount of R$ 3 billion (US$ 1.4 billion) in the market, with market interests to help the private sector. The new long-term line will not have restriction by activity sector or size of the company, as it happened with the Revitaliza and Progerem programs. What is still in discussion about the new product of the bank is whether this credit financing will be made through financing agents of the BNDES or directly though the institution cash. The most probable hypothesis is that the house's established rule should be kept: loans up to R$ 10 million (US$ 4.5 million) granted through agent and, above this amount, by the BNDES. The government's idea is to create one instrument of financial support to avoid bankruptcy of companies in times of credit shortage because of the international financial crisis. The official expectation is that the clients that most use the new line should be small- and mid-sized companies, which have more shortage of funds. But the big companies will also have access to the financing. Until now, working capital lines were rare in the history of the bank. From 2005 on two programs of this financing type were activated, but with limits by size and sectors of the company: Progerem and Revitaliza. Progerem was focused in municipalities selected by the bank and destined to projects related to Local Productive Arrangements (APLs). Its funds are for micro, small and mid-sized companies. It has annual budget appropriation that has been renewed every year and ends now, on December, 31. Revitaliza - support and revitalization program of the shoes, leather products, leather processing, wood processing, ornamental gems, furniture, fabric and clothes sectors - was effective from June, 2007, to June, 2008. The program had an appropriation of R$ 2 billion (US$ 909.1 million). It was created to support companies with intensive capital and exchange problems. It had two types of financings: fixed rate and variable rate, with a cost around 7% for the fixed one, plus 0.5% of spread of the BNDES and 3.5% of the agent with equalization of the Treasury, and term of 96 months.
