Brazil’s state-controlled development bank, known as BNDES, said it cut interest rates that it charges companies on loans to finance working capital.
The rates, which vary depending on the company taking the loan, were lowered to 6 percent from 9.5 percent in the case of small companies, BNDES said today in a statement distributed to reporters in Rio de Janeiro. The bank has 14 billion reais ($6.9 billion) available for the working capital loan program through 2013 and dispensed 4 billion reais last year, said Luciano Coutinho, president of the bank, to reporters in Rio.
President Dilma Rousseff’s administration has renewed efforts to spur growth in the world’s biggest emerging market after China, as gross domestic product expanded less than expected in the first quarter. The central bank reduced the benchmark interest rate to a record low 8.5 percent on May 30, and the government has cut taxes on consumer loans and cars and pressured banks to lower rates on loans to companies and individuals.
Loans under the working capital program are made through the banking system, and will now be available for all small and medium-size manufacturers, whereas before only certain medium- sized companies qualified.
“The BNDES is making a strong cost reduction and wants it to be passed on by financial agents,” Coutinho said. “We believe in the cooperation of the banking system.”
To contact the reporter on this story: Adriana Chiarini in Rio de Janeiro at firstname.lastname@example.org.
To contact the editor responsible for this story: Joshua Goodman at email@example.com.