Sadia is one of the world’s leading producers of chilled and frozen foods. Established in Brazil in 194...
Cyrela Brazil Realty is the largest residential real estate developer in Brazil. Considered one of the m...
Today, Banco do Brasil is the largest financial institution in the Country with 24.4 million clients and ...
CPFL Energia is a holding company in Brazilian electricity sector, operating through its subsidiaries in ...
Copersucar S.A. is the largest Brazilian sugar, ethanol and bioenergy company and a significant player in...

Credit to finance machinery and equipment grows 90% in July

BNDES

Balance of the development bank shows increased disbursements to finance capital goods

Finame's disbursements, the credit line of the National Bank for Economic and Social Development (BNDES) to finance machinery and equipment, grew for the third consecutive month in July. The increase was 90% compared to the same period last year.

According to the balance sheet released by the bank on Tuesday (15), Finame disbursed R $ 2.3 billion in July. In the year to date, the release of funds from this line of credit totaled R $ 12.6 billion, a 35% increase compared to the same period last year.

Since the contracting of the credit line and its disbursement occurs in an average of two weeks, the releases of Finame's resources are a reflection of the short-term investments that enter the Brazilian economy.

In total, the disbursements of the development bank totaled R $ 40.2 billion in the first seven months of the year. In July alone, R $ 6.8 billion were released.

"Signs of recovery of economic activity in the country amid the reduction of market expectations for interest rates at the end of this and next year with inflation under control influence the investment decision. As a result, the expectation is for the gradual recovery of demand for BNDES funds by the end of the year, "the bank said in a report.

Micro and small businesses

The bank's data also show that the majority of loans made available through Finame and Progeren, working capital credit facility, were directed to micro, medium and small businesses.

As a result, 61.1% of Finame's total resources were directed to this segment, and 84.2% of loans to working capital were also released to micro-entrepreneurs.

Source: Portal Brasil, with BNDES information