Jul 11, 2013

• All sectors supported by the Bank showed an increase in disbursements in the first five months of the year. Consultations and approvals also rose

The Brazilian Development Bank (BNDES) disbursed R$ 73 billion between January and May this year, an increase of 67% compared with the same months in the previous year. During this period, all sectors supported by the BNDES – industry, infrastructure, trade and services, and agriculture – received higher disbursements.

Approvals to finance new projects also grew (R$ 70.7 billion), as did consultations to finance new business (R$ 102.7 billion), with respective increases of 21% and 9% accumulated in the first five months of the year. These positive results show that the pace of investments in the Brazilian economy has remained stable. This trend was highlighted in May. In that month alone, the BNDES disbursed R$ 18.6 billion – an increase of 93% compared to May 2012 – and consultations for financing totaled R$ 32.1 billion (up 62%).

Micro, small and medium-sized enterprises (MSMEs) followed the upward trend in disbursements. To smaller companies, the BNDES disbursed R$ 27.4 billion up to last May, 60% higher than last year. Thus, MSMEs accounted for 38% of the Bank’s total releases in the first five months of 2013.

Among the different sectors financed by the BNDES in the first five months of this year, the largest relative growth was posted in industry, with strong growth of 123% in disbursements, reaching R$ 25.8 billion. Highlights were chemical and petrochemical, metallurgy, mechanical and transport equipment, all segments that rely heavily on capital goods. Thus, the operations of the BNDES Finame totaled R$ 29.5 billion, posting a significant high of 87%.

Also, disbursements to the infrastructure sector, totaling R$ 20.7 billion, grew by 19% in the five-month period, driven by construction, highway transport and "other transport" (up 155%), where operations concerning passenger transport are included, such as subways.

Likewise, the projects listed as "other transport" (up 633%) boosted the BNDES’ approval numbers in the infrastructure sector, which totaled $ 25 billion this year through May – up 92% in relation to approvals in the same period last year.

Approvals for building and expanding subway lines alone totaled R$ 4.3 billion in the first five months of the year.

In the January-May period, releases to the trade and services sector gained importance, with R$ 18.4 billion – an increase of 66% compared to January- May 2012. With this, the sector now accounts for 25% of the Bank’s total disbursements. This significant increase was largely due to operations in public social infrastructure, carried out under the programs Proinveste (released late last year), and the BNDES States and Propae. Disbursements to these programs totaled approximately R$ 4 billion in the January-May period.

The BNDES’ good performance in the period also reflects the effectiveness of the BNDES’ Investment Maintenance Program (PSI), whose disbursements totaled R$ 36.5 billion. Over 50% of this total (R$ 18.7 billion) was earmarked for micro, small and medium-sized enterprises. With highly competitive interest rates, PSI operations have grown 285% this year, financing the purchase of machinery and equipment, capital goods as well as innovation projects.