BNDES offering credit to firms facing difficulties
The Brazilian government announced on Thursday the opening of a new line of credit and the extension of an existing one through development bank BNDES.
According to government news agency Agência Brasil, the lines are intended to help companies that face working capital difficulties and those in bankruptcy. The goal is to create conditions for companies in financial and economic crisis to overcome their difficulties.
BNDES president Maria Sílvia Bastos Marques said the government wants to improve the conditions for businesses "in this time of high unemployment and a shrinking economy, with a significant number of companies in bankruptcy."
The first line, for working capital, already existed but has now been extended to the end of 2017. It has also received an extra 2.3bn reais (US$718mn).
"We are adjusting this line [of credit] with conditions that we consider more appropriate for the moment in which we are living," Bastos Marques said. "This line of credit, which was 7.7bn reais, is now 10bn reais."
Of the total, 7bn reais will go to micro, small and medium-sized companies with annual revenues of up to 90mn reais, the report said.
The second line, which is meant to help companies in or heading toward bankruptcy through the transfer of assets from other firms. It will have a budget of 5bn reais and will remain in effect until August 31 next year.
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