Aug 12, 2011

• MSMEs expand their participation in the total released from 32% in 2010 to 42% in the first half of 2011
• BNDES Card’s disbursements increase 73% in the period
• Most notable operations in infrastructure are still expanding and support the increase in investments

The BNDES’ disbursements reached R$ 55.8 billion in the first half this year, which represents a 6% reduction compared to the same period last year. Over the 12 months ending June, the Bank releases amounted to R$ 139.9 billion, which meant a 9% drop compared to the same period 12 months earlier.

The results are in keeping with the BNDES’ expectation to end the year with steady disbursements, which are expected to be between R$ 145 billion and R$ 147 billion, that is, at a level similar to that of 2010, when they reached R$ 143.7 billion. The 2010 figures do not include the R$ 24.7 billion applied to the Petrobras’ capitalization; a distinct operation held in September last year.

Although the Bank’s expectation is for steady releases, the figures for the half show an intensification of financing for infrastructure projects and an expansion of support for smaller companies. Support for the economy through such investments, which are less subject to the impact of foreign crises, is an important differential for Brazil regarding the international scenario.

Taking into account direct operations in the infrastructure sector (those over R$ 10 million), the reduction in disbursements in this sector for the first half last year was 3%, from R$ 5.64 billion to R$ 5.47 billion. Approvals, however, grew 146% in the same period, from R$ 4.30 billion to R$ 10.58 billion, revealing an expectation for investments in energy (both conventional and alternative sources) and logistics.

Considering all infrastructure operations (including those under R$ 10 million, performed by accredited financial institutions), data show a 9% fall in disbursements. The main reason was investments made in advance last year by companies contracting operations in the BNDES’ Investment Maintenance Program (BNDES PSI).

MSMEs – the performance of micro, small and medium-sized companies, with an expanding participation in the Bank’s total disbursements, stood out in the first half of the year. Releases for MSMEs amounted to R$ 23.2 billion from January to June, representing 42% of the total. In 2010, this stake was 32% and, in 2009, some 22%.

In the first half of 2011, some 364,200 financing operations for MSMEs were performed, a 45% increase compared to the first half of 2010. The BNDES disbursed R$ 13 billion to micro and small companies alone in the period – an increase of 23% compared to the same period last year.

The positive performance has resulted mostly from the BNDES Card and the BNDES PSI, which contributed to expanding access to credit to smaller companies. The BNDES Card’s disbursements, R$ 3 billion from January to June, grew 73% compared to the first half of 2010. In the first half of this year alone, the Card performed 223,700 operations.

Sectors – The BNDES’ disbursements to industry and infrastructure surpassed R$ 100 billion over the 12 month period ending June. The PSI played also an important role in this result, stimulating the sectorial diversification of investment in machinery and equipment.

In the first half of this year alone, disbursements to infrastructure reached R$ 21.6 billion, with a 38% participation of the total. Some R$ 18.7 billion (that is, 34% of the total) was invested in industry. Agriculture and cattle-raising received R$ 4.9 billion (9%), and the trade and services sector, R$ 10.4 billion (19%). The sectors with the highest increases in disbursements up to June were extraction, metal, textile and clothing.

Financing approvals by the BNDES, over the first half of 2011, stood at R$ 73.2 billion, 15% below the same period last year; consultations, in their turn, with R$ 91 billion, decreased 23%. Reductions are due to the large volume of PSI operations registered last year.

In that period, more significant investments were made in advance, as the program was originally to expire in June 2010. The PSI was later extended until December of the same year and, then, to March 2011. However, in all periods before such extensions, financing applications grew since the companies concentrated their requests to take advantage of the program’s interest rates, which were lower. Thus, the comparison basis to 2011 was high. With the launch of the Brasil Maior Plan at the beginning of this month, the PSI’s expiry date has been extended to the end of 2012.