Brazil: Government to create state bank to fund exports

29 May 2009

Sao Paulo, Brazil, 29 May – The Brazilian government plans this year to create a specific financial institution to fund exports, the Minister for Development, Industry and Trade, Miguel Jorge told Brazilian newspaper Estado de São Paulo.

The new institution will replace the role currently played by Brazilian bank Banco Nacional de Desenvolvimento Económico (BNDES) as well as by state bank Banco do Brasil.

The minister noted that the new bank would be a “strong arm of the BNDES” by bringing together the operations of risk assessment and guarantees currently carried out by different state bodies.

“Funding exports is very bureaucratic at the moment,” said Jorge, noting that the new bank would have around 2.6 billion reals to promote exorts. (macauhub)