Oct 17, 2017

 Bank has released R$ 50 billion from January to September. Farming and Cattle Raising and Infrastructure sectors stand out

 Working capital line disburses R$ 5 billion in the year and reaches R$ 6.4 billion in 12 months

 Reduction in the pace of decline in credit requests show signs of resumption of investment

 Releases for the Northeast region grow 19% and total R$ 9.4 billion

Disbursements from the Brazilian Development Bank had 41.5% of the participation of micro, small and medium-sized enterprises between January and September 2017. The farming and cattle raising sector and the BNDES Giro program were the highlight of the performance in these first nine months of the year, for the segment.

The BNDES Giro credit line reached R$ 5 billion in 2017, an increase of 289% in relation to the same period last year. In 12 months, the line created to meet the need for companies’ working capital disbursed R$ 6.4 billion, volume 226% higher than in the 12 months between September 2015 and August 2016.

Regional – The Northeast appears prominently in the regional distribution of funds released by BNDES in 2017, with 19% increase in disbursements that reached R$ 9.4 billion. The decline in disbursements was lower in the Midwest (-1%) and North (-10%), and more relevant in the Southeast (-35%) and South (-20%).

Aggregate data – Aggregate numbers show signs of recovery in demand for credit from the reduction in the difference, comparing 2016 and 2017, in the early stages of the credit granting process. 

Inquiries are the first phase of credit analysis and can be observed as an indicator of demand for financing. Between January and September 2017, BNDES inquiries reached the amount of R$ 75 billion, which represents 12% less than in the first nine months of 2016. Considering the last 12 months, R$ 100 billion were recorded in inquiries, value 14% lower than that of one year before. 

The eligibilities of the operations of BNDES — which are the phase of receiving requests for financing and that reflect a future perspective for the performance of the Bank — reached the amount of R$ 66.6 billion between January and September 2017, just 9% less than the same period of 2016. Only in September, R$ 8 billion was eligible in requests for financing. In the last 12 months, the eligibilities totaled R$ 92 billion, value 18% lower than that recorded between October 2015 and September 2016.

BNDES recorded R$ 50 billion in both approvals and disbursements between January and September 2017, decrease of 12% and 20%, respectively, when compared with the same period last year. In the last 12 months, approvals recorded R$ 72.4 billion (-21%) and disbursements R$ 76 billion (-27%).

Sector – Among the sectors, Farming and Cattle Raising maintains good performance with R$ 10.4 billion in disbursements in 2017, an increase of 9% compared with the first nine months of 2016. In 12 months, the increase is of 14% with disbursements of R$ 14.8 billion. The Infrastructure sector increased 37% in approvals, reaching R$ 19.8 billion between January and September 2017, with an emphasis on Electric Power, with R$ 12.2 billion. In disbursements, R$ 18 billion was released this year for Infrastructure, remaining stable in comparison with the same period in 2016.

The BNDES Performance Bulletin