Brazilian Development Bank

The Brazilian Development Bank ( Banco Nacional de Desenvolvimento Portuguese Econômico e Social) - BNDES, formerly body of the Brazilian state, was properly established under Article § 1.628 of the Brazilian Law on 20 June 1952.

The Bank

The BNDES as an institution is linked to the Brazilian Ministry of Development, Industry and Foreign Trade and has the support of projects for the task, which contribute to the development of Brazil. From this activity is to improve the competitiveness of the Brazilian economy and increase the quality of life of its population should arise.

Since its inception, the BNDES has financed large enterprises in industry and infrastructure. She holds a prominent position in supporting agricultural investment, trade and the service sector, as well as for micro-enterprises, as well as for small and medium-sized enterprises. Also directed at investments in social sectors on education, health, family farms, basic health care, environmental protection and public transport plays a role.

Possible support is also to take into account the financing activities and competitiveness of the costs that the development of investment projects, to the purchase of machinery and new equipment are produced in the country, equally sustainability. However, they should also generally lead to an increase of Brazilian exports. The company also made ​​his contribution to the structural strengthening of private sector enterprises at the level of capital and the development of capital markets.

The BNDES has its headquarters in Rio de Janeiro, but also has offices in Brasilia, Recife and São Paulo, along with offices in London and Montevideo.

Subsidy programs

• Finame ( Agência Especial de Financiamento Industrial): a special loan program with the aim to finance the purchase of machinery and equipment
• BNDESPar ( BNDES Participações SA ) to manage a holding company with the target values ​​guarantors partner companies on Brazil's capital markets

Finame, BNDESPar and BDNES together form the so-called " BDNES group ".

The BNDES and the new economic model of Brazil

Should theoretically survive in an economy in which sufficient personal loans are available and affordable in the company without Government subsidies, provide some economic variables Brazil, the government role of BNDES in question. Others, however, defend a new position of state banks, focused on changes in the current Brazilian system to support the government's economic growth can continue ..

Jump-in for government loan request

A very conservative estimate is that the bank in 2009 had to face in the field of infrastructure 30 billion reais available, but in addition also 25 billion reais for various new projects of Petrobras. In February 2009, the Bank approved financing for construction of the Jirau Dam, worth 7.2 billion reais, a record so far for financing programs of individual projects.

Criticism

With the aim to transform the BNDES in a more democratic institution that is more transparent to the public oversight, have more than 30 organizations and social movements joined together to develop common strategies of control, dialogue and commitments. The greatest success of this " Plataforma BDNES " baptized Association since 2007, was your enforcing that the institution must ensure a minimum level of transparency for the projects financed. These must now be published on the website of the BNDES.

Various other points, however, which are also listed in the founding manifesto of the " Plataforma BNDES " remained, long stuck in the evaluation of all of the relevant Organizations, va related to social or environmental controversial companies, faced profit economic interests. The transparency in international business transactions is considered precarious, as well as the criteria and parameters used by which projects are approved for funding. In the course of 2011, there were not only in Brazil but also in other Latin American countries, repeated protests were directed against the actions of the various projects financed by the Bank, such as the omission of the implementation of an environmental study of the financing of a project in Bolivia.