IMPLEMENTATION LEVEL

NFI

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

firm-specific

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 06 May 2013 | Removal date: open ended
Still in force

Local sourcing

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.

AFFECTED COUNTRIES

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