20 March 2009
The Brazilian National Development Bank, BNDES, receives the third installment of a loan to provide credit for businesses to modernize and expand operations.
Source:
John Kolodziejski Dow Jones Newswires
RIO DE JANEIRO -(Dow Jones)- Brazil's National Development Bank, or BNDES, signed a $1 billion loan contract with the Inter-American Development Bank, or IDB, BNDES said Thursday.
The loan will be used by BNDES to provide credit for small and medium-sized businesses to modernize and expand their operations.
The contract signed Thursday will benefit 25,000 companies and will be channeled through 80 local banks. The $1 billion is the third installment of a $3 billion IDB loan for this purpose agreed in 2004, BNDES said. The loan is repayable over 20 years with 4 years grace.
BNDES president Luciano Coutinho said the two banks would start negotiations straight away for a second $3 billion loan contract for the same end.
Thursday's contract was signed with IDB's Brazil representative Jose Luis Lupo. BNDES will make every effort to make the first installment of this new money available for loans this year, Coutinho said.