AFFECTED FLOWOutflow (subsidised)
ANNOUNCED AS TEMPORARYNo
On 6 May 2013, the Brazilian Minister for Industry, Development and Trade (MDIC), Fernando Pimentel, signed a memorandum of understanding between Cuba and Brazil which grants Cuba a US$ 176 million loan to modernize five Cuban airports: Havana, Santa Clara, Holguin, Cayo Coco and Cayo Largo.
The credit is released by the Brazilian Development Bank (BNDES) conditinal on Brazilian content requirements. The money granted to Cuba will flow directly from BNDES to Brazilian companies which then provide for the modernization of the airports. The bilateral discussions in Havana on 6 May 2013 also included an agreement that allows Brazil to hire about 6.000 Cuban doctors (see 'Related Measures').
The Brazilian Development Bank provides credits with below-market interest rates to legal persons (private or public) with headquarters and administrations in Brazil.In the case of companies with headquarters abroad, majorityshareholders (private or public) need to have residence in Brazil. Besides this, the bank imposes local content requirementson goods (mainly capital goods), services and software. However, itmakes exceptions when there is no national production of those goods.
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