Jun 5, 2012

• The BNDES Progeren rates for micro and small companies fall 31%
 
In keeping with the federal government’s initiative to stimulate investment in the Brazilian economy, the BNDES has reduced interest rates and expanded the scope of its program to finance working capital. Changes were made in the BNDES’ Support Program to Strengthen Employment and Income Generation (BNDES Progeren) aimed at increasing production, employment and salaries.

Changes include a drop in financing costs for companies of all sizes, expansion of benefited sectors and revision of the budget cap. Fees charged by the BNDES for micro and small companies will be only 6% per year, down from 9.5%. For medium-sized companies, fees were reduced to 6.5% per year, compared to the 9.5% charged so far. Finally, for the group comprising large and medium-large companies, the rate will be 8%, against the previous 10%.

The program will operate only in the indirect modality, and added to these fees is the remuneration of the financial agent, which is to be negotiated between the final borrower and the on-lending bank. Also, from now on, medium-sized companies in the manufacturing industry may obtain financing from the BNDES Progeren. Previously, credit was only available to specific industrial categories. For micro and small companies, there is still no limitation, while access for large companies to the program remains restricted to those that operate in only a few industries.

The program will be effective until December 31, 2012, and has an available budget of R$ 14 billion. Of this total, R$ 3 billion will be earmarked for medium-large and large companies, while R$ 11 billion is for micro, small and medium-sized companies (MSMEs), including R$ 1.1 billion set aside specifically for MSMEs in municipalities covered by the Constitutional Fund of the North (FNO) and Northeast (FNE). The total term of operations remains at 36 months, including the 12-month grace period.

Visit this link for the presentation made by President Luciano Coutinho during the press conference: http://migre.me/9mTT0