The president of BNDES, Aloizio Mercadante, suggested that Febraban and the federal government discuss a bill to reduce the Long Term Rate (TLP).| Photo: Febraban/Disclosure

The president of the National Bank for Economic and Social Development (BNDES), Aloizio Mercadante, suggested that the Brazilian Federation of Banks (Febraban) and the federal government discuss a bill to reduce the Long Term Rate (TLP), mainly for micro and small companies.The statements were made on Tuesday (31), during a meeting held by Febraban, in São Paulo.

“We are not going to resume the TJLP (Long-Term Interest Rate) – extinct in 2018. The BNDES does not need and is not able to receive subsidies from the Treasury, but it has room to reduce this rate (TLP) and we want to do it together with Febraban. It has to be a bill. It has to be approved by the National Congress. So, it needs a careful technical debate”, defended Mercadante, in a statement reproduced by Brazil Agency.

The TLP replaced the Long-Term Interest Rate (TJLP) and is composed of the variation of the Extended National Consumer Price Index (IPCA) and the fixed interest rate of the National Treasury Notes (NTN-B) in effect at the time of contracting of financing. It entered into force in the contracts signed by the BNDES as of January 2018.

BNDES will help in the reindustrialization of the country

According to the president of the BNDES, the reindustrialization of the country is a priority for the federal government and the bank can help to make it happen. “The BNDES would help with resources. We have several financing lines that already work with many of these companies. Today we already have a very strong portfolio in wind energy. Brazil is already producing wind turbines and other equipment. The effort now is in photovoltaic and solar. We want to do more and do it especially for micro and small companies”, said Mercadante.