Brazil's BNDES president suggests his replacement

The outgoing president of Brazil's federal development bank BNDES, Paulo Rabello de Castro (pictured), suggested an executive from within the bank replace him.

But Castro, who will leave his post over the weekend, declined to reveal the name. He stressed that President Michel Temer is in charge of naming BNDES's new head.

The nomination of executives of federal companies has been a target of criticism, as past nominations were more based on political influence than technical criteria.

Castro is leaving the post to run as a presidential candidate in the October election for the small PSC party. He assumed the position last May, replacing Maria Silvia Bastos.

Castro's chances of being elected are considered very slim, as he is not even included in opinion polls and is largely unknown among Brazilians.

DOWNWARD REVIEW FOR LOANS

After a drop in new loans in the first two months of the year, Castro reduced his estimate for BNDES's lending this year.

Now, he expects new loans of 80bn reais (US$24bn), down from a prior forecast of 90bn reais.

New BNDES loans totaled 6.85bn reais in January-February, down 32% year-on-year.