BNDES doubles credit volume for the Northeast.

The Northeast region received twice as much funding in the first seven months of the year compared to the same period of the previous year from the National Bank for Economic and Social Development (BNDES); R$ 14,6 billion was released, compared to R$ 7,2 billion between January and July of last year, a growth of 101%; the largest disbursements went to the states of Bahia (R$ 5,8 billion), Maranhão (R$ 2,07 billion) and Pernambuco (R$ 1,9 billion).

September 27, 2013, 18:13 PMUpdated May 27, 2019, 08:19 AM

The Northeast Region received twice as much funding in the first seven months of the year, compared to the same period of the previous year, from the National Bank for Economic and Social Development (BNDES); R$ 14,6 billion was released, compared to R$ 7,2 billion between January and July of last year, a growth of 101%; the largest disbursements went to the states of Bahia (R$ 5,8 billion), Maranhão (R$ 2,07 billion) and Pernambuco (R$ 1,9 billion) (Photo: Romulo Faro)

PE247 - The Northeast region received twice as much funding in the first seven months of the year compared to the same period of the previous year from the National Bank for Economic and Social Development (BNDES). The institution released a total of R$ 14,6 billion, compared to R$ 7,2 billion between January and July of last year, representing a 101% increase in disbursements. The states that received the most funding were Bahia, Maranhão, and Pernambuco, with R$ 5,8 billion, R$ 2,07 billion, and R$ 1,9 billion, respectively.

According to BNDES (Brazilian Development Bank), the growth in disbursements was driven by infrastructure projects and the implementation of large industrial projects throughout the Northeast. Financing for the region, which last year reached the equivalent of 13% of the national Gross Domestic Product (GDP), represented 14,3% in the first seven months of this year. The expectation is that by the end of this fiscal year, the total volume of resources applied in the Northeast will reach R$ 23 billion. In 2012, this volume was R$ 21 billion.

According to the head of the BNDES Regional Department, Paulo Guimarães, the change in the ranking – Pernambuco fell from second to third position, behind Maranhão – is due to the fact that large projects, such as the Abreu e Lima Refinery and the Suape Petrochemical Plant, had already had their financing approved previously.

According to Jornal do Commercio, the majority of the funding (27,26%) allocated to Pernambuco was directed towards public administration, being used for water and road infrastructure projects, sanitation, health, logistics, and port infrastructure. Guimarães believes that, throughout the second half of the year, the state should return to second place in the regional ranking and close the fiscal year with disbursements of around R$ 3,5 billion, compared to R$ 3,2 billion recorded in 2012.

In Bahia, which registered a growth of 174%, financing between January and July increased from R$ 2,1 billion in 2012 to R$ 5.8 billion in 2013. Meanwhile, Maranhão saw its disbursements jump from R$ 606,6 million in 2012 to R$ 2,07 billion this year. The largest disbursements were directed towards financing paper and pulp projects and the mining sector.