Jan 28, 2019

The measure will support companies in the city of Brumadinho and its surroundings affected by the recent rupture of a mining waste dam 

In addition to the new credit line, BNDES will allow refinancing to 4.8 thousand local companies that already have contracted operations with the Bank

The Brazilian Development Bank (BNDES) communicates to its network of accredited financial Institutions, on Tuesday, 29, that cities in state of emergency due to the rupture or collapse of dams are offered the Emergency BNDES Automatic credit line. Only cities in a state of public calamity, as declared by the city of Brumadinho, could resort to that line.

The extension allows companies from Belo Vale, Bonfim, Ibirité, Igarapé, Itabirito, Itatiaiuçu, Mário Campos, Moeda, Nova Lima, Rio Manso, São Joaquim de Bicas, and Sarzedo to also be contemplated. The line of indirect loans will be available not only for current users of BNDES credit, but for other clients of accredited financial institutions, that is, the intermediating fund banks of BNDES in the region. BNDES has an exposure of more than R$ 2 billion through indirect credit in that region.

Through the line, businessmen can get a loan worth up to R$ 2.5 million. The maturity is up to 90 months (seven years and six months) and has a grace period of 36 months (three years) to pay, according to the assessment of the intermediating institution. The spread of this fund is linked to TLP, the capture rate of BNDES created by law in 2017.

Refin – BNDES will also reopen the BNDES Line of Refinancing of Active Operations of Accredited Financial Institutions (BNDES Refin). The measure — which will be retroactive to January — can benefit 4.8 thousand companies of the client base of the Bank that act in the localities affected by the tragedy. Refin allows refinancing of installments due in the last four months, in addition to all the future installments.

The grace periods will be extended up to 12 months, and the total period of operation, up to 24 months, according to the assessment of the intermediating institution. 

BNDES joins the Brazilian society in solidarity with the population from the cities affected and, with the financial institution partners, will continue to support the companies and entrepreneurs of Minas Gerais.