Sep 10, 2012

The president of the BNDES, Luciano Coutinho, and the president of the Banco de la Provincia de Buenos Aires (Banco Provincia), Gustavo Marangoni, signed a contract on September 10 to finance Brazilian exports of machinery and equipment to Argentina.

Credit will be provided through the BNDES Exim Automatic support modality, at the post-shipment stage. A line of credit was established in the amount of US$ 20 million to the Argentine bank, and resources may be used to finance local importers of machinery and equipment made in Brazil.

Similar to the financing granted by the BNDES in Brazil through the Finame line, the Banco de la Provincia de Buenos Aires will be one of the BNDES’ accredited banks in Argentina, assuming the credit risk of the Argentine importer.

The disbursement of funds will be made by the BNDES in Brazilian Reais, directly to exporters in Brazil, who will receive cash payment after the shipment of their goods. In these operations, the BNDES will not remit funds abroad.

The partnership between the BNDES and Banco Provincia will provide an important tool to foster trade between Brazil and Argentina, as well as prospects for new opportunities for financial cooperation between the two institutions.

Exim Automatic – The BNDES Exim Automatic was developed by the BNDES’ Foreign Trade Division and due to the growing demand for Brazilian exporters. The product, created in 2010, aims to give greater operational agility when financing Brazilian exports of machinery and equipment and other items of higher added value, by granting lines of credit to foreign banks.

With the BNDES Exim Automatic, the Bank intends to consolidate partnerships with accredited banks in Latin America, thus creating a network of foreign financial institutions to support Brazilian exports.

Currently, there are 18 banks accredited to operate the BNDES Exim Automatic, located across ten countries - Argentina, Chile, Colombia, the US, Honduras, Cayman Islands, Panama, Paraguay, Peru and Uruguay. They are able to finance approximately US$ 800 million in machinery and equipment exports from Brazil.

So far, more than 50 operations have been carried out across six countries, covering 16 banks abroad. The operations all differ in value with a term of up to five years to importers, thus supporting the small, medium-sized and large Brazilian exporters of capital goods.