Entities defend BNDES rate reduction for innovation – 05/01/2023 – Panel

Industry entities came out in defense of the change made by the Chamber of Deputies that reduces the interest rate of financing for innovation and digitalization of the BNDES (National Bank for Economic and Social Development).

The measure entered as “jabuti” in a provisional measure and goes to the Senate. A wing of the financial sector is critical of the measure, as it understands that reducing interest rates using resources from the FAT (Fundo de Amparo ao Trabalhador) is an indirect form of subsidy.

If the reduction is approved, such projects will be remunerated at the Referential Rate (TR) instead of the Long Term Rate (TLP). The entities say that the measure would enable financing of R$ 5 billion per year.

But Fiesp (Federation of Industries of the State of São Paulo), Abimaq (Brazilian Association of Machinery and Equipment Industry) and Ibram (Brazilian Mining Institute) released notes on Thursday and Friday (28) defending the measure and asking for approval at the Senate.

“This important change adds resources to the national innovation system, aligned with the best international practices, reinforcing resources already offered by Finep [Financiadora de Estudos e Projetos] in this modality to foment an increasingly modern and competitive industry”, says a note from Fiesp.

Abimaq said that the measure improves the supply of resources with “compatible” costs, “making the process more accessible to the specific needs of companies with regard to digitalization and innovation”.

The Ibram, in turn, said that the process of deindustrialization in Brazil, as well as the need to increase the density of the export basket, “are not missions that can be overcome without a considerable increase in investments in research, development and innovation”.

This measure deserves the support of the entire Brazilian society because it adds to the development efforts with competitiveness, capable of generating employment and income.

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