Dec 18, 2020

The Inter-American Development Bank (IDB) disburses on Friday (18th) a US$ 750 million loan, equivalent to R$ 4 billion, to the Brazilian Development Bank (BNDES).

Along with the US$ 150 million contribution of the Brazilian Development Bank, almost R$ 5 billion will be offered to micro-, small- and medium-sized Brazilian companies (MSME).

The resources will enable financing to more than 20,000 entrepreneurs who will be able to access them through the credit lines available at BNDES, even via digital platforms.

This is the case of the MPME Channel, which connects requests and BNDES accredited agents.

The credit will also support the Bank in promoting innovative fintech solutions (companies that offer low-cost financial services, typically through digital means such as internet and credit card machines) to facilitate credit to micro-, small- and medium-sized companies.

The operation gains special relevance in view of the impacts brought by Covid-19 and the need to protect national entrepreneurs. The MSMEs account for 41% to 53% of job openings in the country, depending on the chosen criteria.

BNDES and IDB have a long partnership in supporting MSMEs in Brazil, said Gustavo Montezano, president of BNDES. The IDB operation also reinforces ongoing digitization initiatives at BNDES, such as PEAC Maquininhas and a credit fund for fintechs, which provides faster support to companies, especially small ones. “By supporting those who are our national heroes, the initiative will help small- and medium-sized businesses to gain productivity, sustainability and financial soundness,” said Montezano.

“In the current scenario, we need to combine forces to preserve employment, income and productive capacity, especially in a context in which opening a company costs time and money that we cannot afford to waste. In this sense, having the solidity and national presence of BNDES is fundamental,” says Morgan Doyle, IDB representative in Brazil.
The operation includes US$1.88 billion (almost R$10 billion) that the IDB allocated in 2020 alone for the economic recovery of micro-, small- and medium-sized companies in Brazil, in the face of the crisis caused by Covid-19.


About BNDES
Founded in 1952 and currently linked to the Ministry of Economy, BNDES is the main instrument of the Federal Government to promote long-term investments in the Brazilian economy.  Its actions are focused on the socio-environmental and economic impact in Brazil. BNDES offers special conditions for micro-, small- and medium-sized companies, in addition to social investment lines, aimed at education and health, family farming, basic sanitation and urban transport. In crisis situations, BNDES acts in an anticyclical manner and assists in the formulation of solutions for the resumption of economic growth.
 
About IDB
The Inter-American Development Bank is dedicated to improving lives. Established in 1959, IDB is an important source of long-term financing for the economic, social and institutional development of Latin America and the Caribbean. IDB also conducts cutting-edge research projects and provides advice on policies, technical assistance and training to public and private clients throughout the region.


Press Office
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