Source:
IFIs Latin American Monitor
Mon Jan 14 2008
The National Economic and Social Development Bank of Brazil (BNDES) announced it would open an office in Montevideo, Uruguay. Luciano Coutinho, BNDES president, explained that the bank would "provide financing on a large scale for exports and imports, foreign trade and business transactions that will take place in Uruguay". Meanwhile, different Brazilian social organizations are looking into the impact of the bank's financing and query the bank's information policy.
After the Mercosur Presidential Summit held in Montevideo on 18 December, the opening in the Uruguayan capital of the new office of the National Economic and Social Development Bank of Brazil (BNDES) became official.
The ceremony was attended by Luciano Coutinho, president of BNDES, Lula da Silva, president of Brazil, and Tabaré Vázquez, president of Uruguay, among other national and regional authorities. Coutinho explained that the bank would "provide financing on a large scale for exports and imports, foreign trade and business transactions that will take place in Uruguay" and added that the initiative is part of the support that Brazil will give to projects like the Southern Bank.
This is the first international office of the institution after the Washington office was closed down. According to BNDES authorities, Brazil chose the Uruguayan capital because it was already seat of other offices linked to the regional block and international organizations like the Mercosur Secretariat and Parliament and the Secretariat General of the Latin American Integration Association (ALADI).
The office will promote programmes involving the region, in particular in Mercosur countries and will inject dynamism between the bank and the companies in the area as well as government and regional organizations.
In Uruguay, in the last few years, BNDES financed the renewal of the Montevideo public transport fleet of buses for USD 40 million, fresh water infrastructure for USD 21 million and the purchase of agricultural machinery for a further USD 19 million.
Furthermore, in early 2007, the bank was studying a proposal submitted by the Uruguayan Sate to improve the sewerage system of the capital, renovate the border bridge between the cities of Jaguarao (Brazil) and Río Branco (Uruguay), build a grain terminal at the port of Nueva Palmira as well as probably reinstate the shut down railway service.
BNDES in Brazil
BNDES was founded in 1952 and is one of the main instruments for the promotion of development in Brazil. The Bank was one of the principal institutions responsible for the financing of infrastructure, industrialization in its different stages, and the financing of privatization projects in the 90s.
In 2006 BNDES paid out 19% of the total national credit of Brazil and the sum total of its outlay reached a record USD 35 billion. Only 18% is aimed at small and medium enterprises, while the social area receives only 3%.
Currently BNDES is a key part of the Growth Acceleration Programme (PAC) promoted by president Lula for the period 2007-2010, aimed at large infrastructure works, with strong state participation.
During the last few years civil society organizations have been monitoring the economic, social and environmental impact caused by financial backing by BNDES in the country. In 2007 these organizations went public with their questioning of the bank in relation to its transparency, social participation and control, criteria for analyzing the projects to be financed, and sectorial policies.
Related Information:
* A Platform for BNDES
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