AFFECTED FLOWOutflow (subsidised)
ANNOUNCED AS TEMPORARYNo
On 9 February 2009, the Brazilian Ministry for Industry, Development, and Trade (MDIC) and the Brazilian Agency for Industrial Development (ABDI) signed an agreement with the Cuban government which includes a loan of US$300 million for the development of the Port of Mariel (about 45km from Havana).The Brazilian Development Bank BNDES is going to provide the loans which will come in stages and are supposed to ultimately account for US$682 million. The Mariel Special Development Zone is a container port which will be developed by the Brazilian construction company Groupo Odebrecht SA.
The agreement included that out of the total costs of US$957 million, Cuba had to spend at least US$802 on services by Brazilian companies. The government estimated that about 400 Brazilian providers are supposed to benefit and about 153,000 jobs will be created from the subsidized BNDES credit.
On 24 January 2014, with the formal opening of the port, Brazil announced that it will release a second loan of US$290 million which will again be issued by the BNDES. The first credit financed the construction of the port, the second one will develop the Mariel Special Development Zone with the aim of strengthening trade between the two Latin American countries.
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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