BNDES head expects 2011 disbursements similar to last year's US$89.5bn

- Tuesday, April 5, 2011

BNDES head expects 2011 disbursements similar to last year's US$89.5bn

Brazilian national development bank BNDES expects its disbursements this year to be similar to 2010's 144bn reais (US$89.5bn), local daily O Estado do S Paulo reported BNDES president Luciano Coutinho as saying at a seminar hosted by capital markets association Anbima.

The BNDES chief said he expects investments in Brazil to grow 8-10% this year and the economy to expand close to 4%.

To grow at 5% per year during the next decade, Brazil will need investments of 280bn reais per year, according to an estimate by Anbima.

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The government wants BNDES to reduce its dominant financing role in the economy and to see more long-term financing from the private sector.

Coutinho said the bank's objective now is "to give space for the private sector" in long-term financing, but noted that BNDES' own such financing could not be reduced in a "radical" way, as this would lead to a higher funding cost for many projects, according to the report.