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Brazilian national development bank BNDES' investment guarantee fund - fundo garantidor para investimentos (BNDES FGI) - has provided guarantees for loans worth 1.2bn reais (US$779mn) in less than a year of its launch, the bank said in a press release.
Some 6,773 operations have been made under the fund, with 92% of the total going to individuals and micro enterprises. BNDES noted that 53% had never received any type of financing from the bank before.
BNDES and the national treasury are shareholders in BNDES FGI, while authorized Brazilian financial institutions act as intermediaries for companies seeking funds. A total of 17 financial institutions have been authorized to operate with the fund, of which nine are private sector lenders.
The fund operates separately from BNDES' corporate structure, with its own assets and corporate governance. At end-June, BNDES FGI had 789mn reais in equity, giving the bank the capacity to disburse some 12bn reais in loans for SMEs, according to the release.