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: 10 Aug 2015 | Removal date: open ended
Still in force

State loan

The Brazilian Development Bank (BNDES) announced to provide 59.4 million real (USD 17 million) to Tanac S/A for the construction of a wood pellet factory in Rio Grande do Sul. The plant is going to be Latin America’s biggest wood pellets production site with its produce destined for exportation. According to Tanac S/A, the construction of the factory started in October 2014 and is supposed to be completed by early 2016, with its pellets exportation scheduled to start in mid-2016. The measure is considered discriminatory since, in general, the Brazilian Development Bank provides credits with below-market interest rates only to legal persons (private or public) based in Brazil. In the abovementioned loan, the interest rates are at 7 percent per annum for SMEs and 9.5 percent per annum for all other types of enterprises, whereas the Central Banks overnight interest rate is at about 14 percent.

AFFECTED COUNTRIES

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