Oct 27, 2020

 The Brazilian Development Bank (BNDES) has already raised R$ 105 billion in the economy to help Brazilian companies overcome the effects of the Covid-19 pandemic. Over the course of seven months, since the first measures were adopted in late March, this figure has been allocated primarily to micro-, small- and medium-sized enterprises (MSME), which make up 96% of the 258,000 supported enterprises. All of them employ more than 8.5 million people.

The main highlight of these actions is the Emergency Credit Access Program (PEAC), which has provided 89,000 companies with R$ 71.1 billion in guaranteed credits since its launch on June 30. In all, 46 accredited financial institutions can contract loans with guarantee from the National Treasury via the Investment Guarantee Fund, model of PEAC. The partner financial institutions are responsible for the final decision to use the program’s guarantee and evaluate the credit application when structuring each of its operations.

In addition to these R$ 105 billion destined to Brazilian companies, another R$ 20 billion were transferred from the PIS-Pasep Fund, administered by BNDES, to FGTS, allowing individuals to make emergency withdrawals and allocate part of these resources to consumption. The transfer also helped restore the economy and boosted small businesses. Computed this amount, the total emergency measures operationalized by BNDES reaches R$ 125 billion.

Performance of BNDES emergency lines – The initiatives are being announced since March 22 and seek to preserve jobs and the companies’ economic activities during this period, besides enabling investments in the health sector. Below is an overview of the measures already available:

- BNDES and the Ministry of Economy offered guarantees to 89,000 companies via the Emergency Credit Access Program, totaling R$ 71.1 billion in contracted credits. Of this amount, R$ 66.0 billion were allocated to small and medium-sized enterprises.

- The PEAC Maquininhas line, focused on loans offered by accredited financial institutions based on the revenue of payment terminals, reached R$ 105 million approved for 3,300 clients.

 - The Small Business Credit line, which offers credit for working capital, has already approved R$ 8 billion, supporting 24,600 companies.

- In two stages, the Emergency Employment Support Program (PESE) approved R$ 7.3 billion in credit. 

- The standstill to the private sector totaled R$ 12.6 billion, benefiting more than 28,600 MSMEs and 499 large companies.

- Emergency actions aimed at the public sector totaled R$ 3.9 billion in suspension of payments from states and municipalities. In addition, BNDES accelerated the release of financing contracted by states in the amount of R$ 225 million.

- The consortium formed by BNDES and 15 other financial institutions contracted R$ 15.3 billion in the Covid Account to finance the electricity sector, as to avoid an immediate increase in tariffs. Of this amount, BNDES contributes with R$ 2.7 billion.

- Matchfunding Saving Lives, a crowdfunding action for purchasing materials, supplies and equipment for santas casas and philanthropic hospitals, raised R$ 74 million (half of this amount funded by BNDES). 

- The approvals of the Coronavirus Pandemic Emergency Support Program totaled R$ 293 million for the health sector, contributing to open up to 2,900 ICU and infirmary beds, and acquire 1,700 medical equipment, such as monitors and ventilators, and 4 million Covid-19 diagnostic kits.