The industrial sector is advocating for changes that reduced BNDES interest rates for financing innovation and digitalization.
The amendment that allows for a reduction in interest rates was made by the Chamber of Deputies and still needs to be approved by the Senate.
247 - Entities linked to the industrial sector have come out in defense of the amendment made by the Chamber of Deputies that allows for a reduction in the interest rate of the financing line for innovation and digitalization from the National Bank for Economic and Social Development (BNDES). The text still needs to be approved by the Senate.
"If the reduction is approved, such projects will be remunerated by the Reference Rate (TR) instead of the Long-Term Rate (TLP). The entities say that the measure would enable financing of R$ 5 billion per year," the column highlights. Dashboard, from Folha de S. Paulo.
The National Confederation of Industry (CNI) stated on its website that the measure "will reduce the cost of borrowing for BNDES and allow the bank to support innovation and digitalization activities with rates more adjusted to these activities." "In practice, this means that loan interest rates will be around 2% per year, compared to the current TLP rate of over 7% per year," said the CNI.
The Brazilian Chemical Industry Association (Abiquim) also stated that it "supports the decision taken by the Chamber of Deputies" and that the measure should "reduce the cost of raising capital for BNDES, allowing the bank to support these innovation projects, particularly those involving disruptive technologies that require 'patient' capital and are characterized by high risk, and precisely for that reason, require a differentiated rate. The text also indicates that it will be up to the National Monetary Council (CMN) to define the eligibility criteria."
Last week, the Federation of Industries of the State of São Paulo (Fiesp), the Brazilian Association of Machinery and Equipment Industries (Abimaq), and the Brazilian Mining Institute (Ibram) also released statements defending the measure and requesting its approval by the Senate.
Despite support from industry-related entities, the measure is viewed with apprehension by a segment of the financial market, which believes that lowering interest rates through the use of resources from the Workers' Support Fund (FAT) would be a form of indirect subsidy.