Supports credit program for micro, small and medium-size enterprises
The Inter-American Development Bank today announced the approval of a $1 billion loan to BNDES, Brazil’s national development bank, to provide long-term credit to microenterprises and small and medium-size businesses.
Some 30,000 businesses may benefit from these resources, through a program involving more than 80 Brazilian banks.
“Microenterprises and small businesses have always been a priority for the IDB. At this time, given their capacity to generate jobs and boost competitiveness in supply chains, these businesses are crucial for strengthening exports and the economy as a whole,” said the IDB Representative in Brazil, Jose Luis Lupo.
Credit mobilized by the IDB loan through local banks will help finance micro, small and medium-size businesses’ expansion and modernization plans.
"This announcement reaffirms the long-term partnership between the IDB and BNDES, and it comes at an appropriate time when small firms a dealing with credit availability problems”, said BNDES President Luciano Coutinho.
For the IDB, BNDES is one of the most important partners for growth and progress in Brazil. “BNDES plays a strategic role in increasing the availability of credit in this economy,” Lupo added.
Since 1997, IDB loans totaling $5.5 billion have helped finance six multisector credit programs for small businesses with BNDES, mobilizing some $9.8 billion in credit through 120 Brazilian banks.
The new loan is for 20 years, with a four-year grace period. BNDES will provide another $1 billion in counterpart funds. The loan is the third one of the same size made from a $3 billion conditional credit line launched in 2004.
The IDB’s partnership with BNDES is part of a strategy agreed with the Brazilian government to promote sustainable growth with social inclusion.
