Oct 23, 2012

• The amount is 3% higher than that posted in the same in 2011 and was driven by industry and infrastructure, responsible for 68% of the total

The Brazilian Development Bank (BNDES) disbursed R$ 94.6 billion between January and September this year, up 3% when compared to the same period in 2011. Industry and infrastructure, together, accounted for 68% of the Bank’s total performance. The BNDES released R$ 33.5 billion to industry in the period, while infrastructure received R$ 31 billion, revealing a balance between the two segments.

These results suggest the economy is growing, pressed by investments, especially in industry. The rise in disbursements to the industrial sector in the first nine months of the year reached 18%. Standing apart are pulp and paper, chemicals and petrochemicals, mechanics and transport material.

Over the period, in comparison with that in 2001, all phases of the BNDES’ operations registered expansion, with an expressive 45% increase in consultations (accumulated total of R$ 200 billion), a 35% hike in eligibilities (R$ 182.8 billion) and a 9% rise in approvals (R$ 129.9 billion). Consultations are a kind of thermometer measuring the interest of Brazilian businesspeople in investing.

Behavior in the accumulated result for the period in question reflects the several measures the government has taken to encourage investments, such as reducing the interest rates of the BNDES’ Investment Maintenance Program (BNDES PSI) to acquire machinery, equipment, buses and trucks.

Expectations are for the pace of releases to accelerate even more over the coming months, especially under the impact caused by the fall in PSI rates to 2.5% p.a. (up to December 31). The Program’s disbursements, totaling R$ 27 billion in the January-September period, account for close to 29% of the BNDES’ global disbursements in the nine month period.

The BNDES’ accumulated result between January and August totaled R$ 81.1 billion, a 1% increase in relation to the same period in 2011. This positive figure reinforces the recovery from the low posted in the first half of the year (January to July). Also between January and August, there was strong growth in consultations (42%), in eligibilities (25%) and in approvals (14%).

September – Considering September by itself, the R$ 13.4 billion in disbursements were 20.5% higher than the releases in the same month last year. In the same vein, consultations reached R$ 33.1 billion, a 64.4% jump, while the R$ 31.6 billion in eligibilities was up 109% in the monthly comparison.

The industrial sector contributed most to the month’s performance, with growing disbursements in all segments supported by the BNDES. The Bank’s releases to industry reached R$ 5 billion, a 69.4% hike in relation to September 2011.