BNDES doubles credit for micro, small and medium-sized companies – 05/08/2023 – Market

The BNDES announced this Monday (8) that it has doubled the credit limit per customer of its line for micro, small and medium-sized companies, from R$10 million to R$20 million a year, the development bank reported.

The decision comes at a time when the country’s banks have opted to focus their portfolios on segments with better risk profiles amidst an environment of high interest rates and uncertainties about economic growth.

According to the BNDES, medium-sized companies with annual revenues of up to R$300 million will be able to access this line by the end of December this year.

The objective, according to the BNDES, is to reduce restrictions on access to the credit market for micro, small and medium-sized companies. With this, the bank hopes that companies of this size will be able to continue their business and maintain jobs.

Earlier, the chief executive of Itaú Unibanco, Milton Maluhy Filho, stated in conferences with journalists and analysts that he expects a gradual normalization of defaults in the corporate segment over the coming quarters. The executive also mentioned that companies have shown low demand for longer-term credit, aimed at investments, and more demand for short-term lines of working capital.

“Micro, small and medium-sized companies have, in general, less availability of assets and, in addition, their access to credit is particularly impacted by the economic situation”, said the BNDES in comments to Reuters.