Brazil: new credit line for exports of consumer goods
The Brazilian Development Bank (BNDES) implemented a new credit line amounting to R$ 7 billion for the pre-shipment phase of exports of consumer goods, in a decision announced on 29 April 2010. The initial interest rate is 7% per year until the end of June when it will be increased to 8% per year.
It is worth noting that on 29 April 2010 the Brazilian central bank's target overnight interest rate was 9.5%, suggesting a degree of subsidisation is factored into the credit line.
Recently, through the Resolution nº 3910 of 29th September 2010, the Brazilian government decided to increase the total financing ammount to R$ 134,000,000,000.00. Nevertheless, this resolution does not specify the amount alocated for the finance of consumer goods or capital goods. The deadline for the operation of this program was extended to 31st March 2011.
Any Evidence-Based Deliberation:
|Is there anything in the public record to suggest that evidence of the effectiveness of the proposed measure was considered during official deliberations?||Yes|
|Is there any evidence that alternatives to the proposed measure were considered?||No|
|Is there anything in the public record that suggests that empirical evidence informed the comparison across the alternatives available to government?||No|
|Was such evidence identified?||No|
|Is such evidence publicly available?||No|
|Did the official decision-maker in question provide an explanation as to why a chosen measure was favoured over alternatives?||No|
|Is there any evidence to suggest that potentially affected trading partners were consulted before the measures were taken?||No|
|Is there any evidence that safeguards have been put in place to ensure that implementation of the initiative is transparent and non-discriminatory?||No|
|Did the government state its intention to review the measure within one year of implementation?||Yes|
Date Discovered: 01/05/2010
Date of inception: 30 Apr 2010
Duration: 11 months
GTA Evaluation: Red
BACEN Resolution nº 3851, from April 29th, 2010 - http://www.in.gov.br/imprensa/visualiza/index.jsp?jornal=1&pagina=63&dat...
Resolution nº 3951- http://www.in.gov.br/imprensa/visualiza/index.jsp?jornal=1&pagina=44&dat...
Government Response: The government issued the measure