Aug 14, 2015

• Bank lifts restrictions and increases the limit in the BNDES Progeren from R$ 20 million to R$ 70 million. Program will be effective up to end of the year, with a budget of R$ 7.7 billion

The Brazilian Development Bank (BNDES) expanded access to its working capital financing program. From now on, companies of all sizes and sectors may request resources from the BNDES Support Program to Strengthen the Capacity to Generate Job and Income (BNDES Progeren) with no restrictions whatsoever.

Previously, the program was accessible by micro, small and medium-sized companies (MSMEs), excluding large companies engaged in a particular set of categories. The Bank decided to make the changes because it considered that, in the current economic scenario, there is need to provide more financial relief to companies.

The limit per beneficiary increased from R$ 20 million to R$ 70 million. Exceptionally for the sugarcane sector, the limit is R$ 130 million. The term to repay loans is sixty (60) months, including the grace period of twenty-four (24) months.

The budget earmarked for the BNDES Progeren is R$ 7.7 billion, valid until the end of 2015. The program offers the indirect model, which means that requesting resources will require applicants to contact commercial banks that are also financial agents of the BNDES (most Brazilian banks).

Conditions – The best conditions in the program are offered to micro, small and medium-sized companies. Smaller companies will pay the Selic financial cost, which is a spread of 0.4% per annum and financial intermediation rate of 0.1%, in addition to the financial agent’s spread.

For medium-sized and large companies, the BNDES’ spread is 1.3% and 2% per annum, respectively, and both are subject to the financial intermediate rate of 0.5%, in addition to the financial agent’s spread. New program conditions are to be disclosed by the BNDES to the financial agents in a circular by August 21.