Oct 31, 2011

The BNDES’ disbursements reached R$ 91.8 billion from January to September of this year. The figure is the result of an already expected moderation in the Bank’s performance. The bank had adjusted a few credit lines and reduced the average of its maximum level of participation in financing. This moderation is also in keeping with the behavior registered in general indicators of the Brazilian economy.

Compared to disbursements in the same period last year, R$ 128 billion, there was a drop of 28%. In the first nine months of 2010, the BNDES’ performance was strongly influenced not only by Petrobras’ capitalization operation held in September of that year, which amounted to R$ 24.7 billion, but also by large hydroelectric projects in the sector over the past year. Excluding the Petrobras operation, the fall in disbursements in the first nine months of the year was 11.1%.

The period between January and September 2010 was also marked by the BNDES’ strong performance in granting financing to the machinery and equipment sector, with lower interest rates and swifter credit appraisal. These facts contributed to raising the comparison base for 2011.

In 2011, changes were introduced in the Investment Maintenance Program (BNDES PSI), which led to reduced disbursements, consultations and approvals at the Bank this year. The Program was extended in last April with higher interest rates. Thus, PSI disbursements were R$ 33.7 billion between January and September 2011, against the R$ 50.9 billion in the same period last year (a 34% decrease).

The PSI was created in July 2009 to tackle the international financial crisis, and it succeeded in maintaining investments ongoing over the credit crunch period. With changes in the conditions of the program, the Bank was expecting to see an effect on the demand for financing. In addition to increasing the PSI rates, the BNDES has reduced its level of participation in financing for total investments, which similarly contributes to moderating the indicators.

The Bank is also acting in conjunction with the private financial sector to expand the latter’s participation in long-term financing. These efforts should contribute to stabilizing the BNDES’ role in the supply of credit, and there are already signs of the growing importance of the capitals market in investment financing. The value of debenture issuances and primary stock offerings has already reached R$ 73.4 billion this year, a growth of 70.1% over last year's figure, according to data from the Brazilian Association of Financial and Capital Markets (Anbima).

Sectors - The infrastructure sector led the Bank's disbursements in the first nine months of this year. For this sector, some R$ 38 billion was earmarked in the period, 41% of the total released by the Bank. Highway transport (R$ 19.7 billion), electricity (R$ 9.7 billion) and railway transport (R$ 1.1 billion) were the highlights in the infrastructure segment, where projects are listed in the Brazilian Growth Acceleration Program (PAC). Industry received R$ 28.4 billion (31% of the total), followed by trade and services (R$ 17.9 billion) and agriculture (R$ 7.2 billion).

The BNDES disbursed a record volume of R$ 36.2 billion to micro, small and medium-sized companies (MSMEs) up to September this year, an 8% increase compared to January/September 2010. Therefore, the MSMEs accounted for 39.5% of total funding provided by the Bank in the first nine months of the year. With this, the BNDES continues its strategy to expand access to credit for smaller companies. The Bank performed around 600,000 operations with MSMEs over the period, or 94% of the total performed. This excellent result with the MSMEs is due to the BNDES Card, with disbursements of R$ 5.2 billion in January/September.