BNDES opposes project that requires congressional approval for export loans – 06/20/2023 – Panel

The BNDES (National Bank for Economic and Social Development) is mobilizing against the approval of a project that could create constraints for financing operations for export services.

The text, proposed by deputies Mendonça Filho (União-PE) and Daniel Freitas (PL-SC), would require approval from Congress for this type of action. The matter is expected to be voted on next week by the Constitution and Justice Commission, the first stage of the procedure in the House.

“I am sure that Congress will calmly analyze this project and all its implications. Obviously what is proposed will make the process of approving operations more difficult, as there will be one more procedure to be followed”, says the Director of Productive Development from the bank, José Luis Gordon.

In addition to talking to deputies, the bank has been assisted in the mobilization against the project by class entities such as Abdib (Brazilian Association of Infrastructure and Base Industry) and Abimaq (Brazilian Association of Machinery Industry), which sent manifestations to the CCJ .

One of the concerns is the fact that operations financed by the bank would have to be scrutinized by Congress, including points that could affect commercial strategies.

The theme of exports financed by the BNDES is one of the most used politically by the Bolsonarist base in Congress, mainly due to projects involving countries like Venezuela and Cuba.

Both leftist dictatorships have overdue installments of funding to be paid to Brazil.

For Gordon, there is a lot of ignorance about the bank’s role in promoting exports.

“The BNDES does not invest a penny in any country, but rather supports Brazilian exporting companies, which bring in foreign currency and generate jobs. It is an important part of rescuing Brazilian industry. We cannot remain confined to Brazil alone, we have the whole world to sell “, he said.

Of the bank’s portfolio, he says, only 1.3% refers to export financing. “The Bolsonaro government practically zeroed out support for the industrial sector to export. The Lula government wants to go back to what it was in the past,” he said.

Regarding the debts of bad debtors, the bank recalls that there is a guaranteed fund that is not made up of public money. “It’s an accounting fund, without taxpayer resources,” he says.

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